A company has common stock and cumulative preferred stock. The preferred stock is 4%, $10 par, and

Question:

A company has and cumulative preferred stock. The preferred stock is 4%, $10 par, and there are 25,000 shares outstanding. The company didn't pay dividends in the previous two years. In the current year, the company declares dividends of $37,000.
Required
Determine the amount of current year dividends allocated to common stockholders.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...