Mega, Inc , has common and 6 percent preferred stock outstanding as follows Preferred stock 10,000 shares, $100 par value, cumulative Common stock 50,000 shares, $50 par value The company declares a total dividend of $200,000 If the dividends on preferred stock are one year in arrears (in addition ...

Total dividend declared 200000 D ...

Mega, Inc., has common and 6 percent preferred stock outstanding as follows: Preferred stock: 10,000 shares, $100

Question:

Mega, Inc., has common and 6 percent preferred stock outstanding as follows:
Preferred stock: 10,000 shares, $100 cumulative
Common stock: 50,000 shares, $50
The company declares a total of $200,000. If the dividends on preferred stock are one year in arrears (in addition to the current year), how will the total be divided between the common and preferred stock?

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,...