Lopez, Inc. has 2,000 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of

Question:

Lopez, Inc. has 2,000 shares of 4%, $50 cumulative preferred stock and 50,000 shares of $1 outstanding at December 31, 2009, and December 31, 2010. The board of directors declared and paid a $3,000 in 2009. In 2010, $15,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2010?
Preferred Common
a. $9,000 ..... $6,000
b. $7,500 ..... $7,500
c. $5,000 ..... $10,000
d. $4,000 ..... $11,000

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...