Question

Wininger Corporation has 1 comma 5001,500 shares of​ 6%, $50 par​ value, cumulative preferred stock and​ 25,000 shares of​ $1 par value common stock outstanding on December​ 31, 2019 and December​ 31, 2020. The board of directors declared and paid a​ $2,000 dividend in 2019. In​ 2020, $ 21 comma 000$21,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2020​ (there were no dividends in arrears prior to​ 2019)?

Answer 1

$18,500

Step-by-step explanation:

1500 *$50 *6%

= $4500 Preferred Dividend

$4500 *2 years = $9000

$4500 - Amount paid $2,000

= $2500

$21,000 - $2500

= $18,500

Therefore the dividends received by the common stockholders in 2020​ will be $18,500