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 par value, cumulative

Common stock: 50,000 shares, $50 par value

The company declares a total dividend of $225,000. If the dividends on preferred stock are one year in arrears (in addition to the current year), how will the total dividend 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...

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