Nova Corporation, organized on January 1, 2015, had 3,000 $2 cumulative preferred shares and 5,000 common shares issued and outstanding Nova Corporation paid no dividends in 2015 and 2016 In 2017, the corporation paid dividends of $50,000 Determine the distribution of the dividend between the prefe...

Nova Corporation, organized on January 1, 2015, had 3,000 $2 cumulative preferred shares and 5,000 common shares

Question:

Nova organized on January 1, 2015, had 3,000 $2 cumulative preferred shares and 5,000 common shares issued and outstanding. Nova paid no dividends in 2015 and 2016. In 2017, the paid dividends of $50,000. Determine the of the between the preferred and common shareholders.
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... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... 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...