Question

Elem Inc. Has issued 3,000, 8% preferred stock at $10 per stock and 10,000 common stock issued at $10 par value. The corporation's directors declared that it would pay dividends of 5% at the end of the year. How much will the preferred stock holders receive?

Answer 1

the amount does preferred stockholder received of dividend is $2,400

Step-by-step explanation:

The calculation of the amount does preferred stockholder received= for dividend is shown below:

= Number of share issued × par value per stock × preferred dividend percentage

= 3,000 × $10 × 8%

= $2,400

Therefore, the amount does preferred stockholder received of dividend is $2,400