Division Corporation has 20,000 shares of $5 00 participating 9 percent cumulative preferred stock and 100,000 shares of $2 00 common stock On July 1, the board of Division declared a $30,000 dividend at the time the common stock was selling for $25 per share and the preferred stock was selling for...

Preferred Common A 10000 20000 Total Preferred Stock 5 x 20000 100000 Total Common Stock 2 ...

Division Corporation has 20,000 shares of $5.00 participating 9 percent cumulative preferred stock and 100,000 shares of

Question:

Division has 20,000 shares of $5.00 participating 9 percent cumulative preferred stock and 100,000 shares of $2.00 . On July 1, the board of Division declared a $30,000 at the time the was selling for $25 per share and the preferred stock was selling for $30. The total paid to each class of stock on the payment date was:
Preferred Common
A. $10,000 ...... $20,000
B. $16,000 ...... $14,000
C. $12,500 ...... $17,500
D. $9,500 ...... $20,500
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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...