Question

Bronze Tint declares cash dividends of $ 28 comma 000 for 2018. How much of the dividends goes to preferred​ stockholders? How much goes to common​ stockholders? ​(Complete all input boxes. Enter​ "0" for any zero​ amounts.) Bronze Tint​'s dividend would be divided between preferred and common stockholders in this​ manner:

Answer 1

$25,800

Step-by-step explanation:

The computation of Dividend to common stockholders is shown below:-

Total dividend $28,000

Dividend to preferred stockholders:

Dividend in arrears

Current year dividend $2,200

(4,000 × $11 × 5%)

Total dividend to preferred

stockholders $2,200

Dividend to common stockholders $25,800

($28,000 - $2,200)