Baker Company has common and preferred stock outstanding as follows Common stock 100,000 shares, $30 par value 8 percent preferred stock 10,000 shares, $100 par value Dividends on preferred stock have not been paid for the last three years (in addition to the current year) If the company pays a tot...

Total dividend declared 120000 Dividend requirements fo ...

Baker Company has common and preferred stock outstanding as follows: Common stock: 100,000 shares, $30 par value

Question:

Baker Company has common and preferred stock outstanding as follows:
Common stock: 100,000 shares, $30 percent preferred stock: 10,000 shares, $100 on preferred stock have not been paid for the last three years (in addition to the current year). If the company pays a total of $120,000 in dividends, how much will the common stockholders receive per share if the preferred stock is not cumulative? How will your answer differ if the preferred stock is cumulative?
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,...