Toonces, Inc. has outstanding 600,000 shares of $2 par common stock and 120,000 shares of no-par 6% preferred stock with a stated value of $5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year.

Assuming that $225,000 will be distributed as a dividend in the current year, how much will the common stockholders receive?

Answer rating: 100% (QA)

To determine how much the common stockholders will receive as a dividend we need to consider the pri... View the full answer