Aero Manufacturing Corporation has 6,240 shares of cumulative, 5.75%, $75 par value preferred stock outstanding, and...

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Aero Manufacturing Corporation has 6,240 shares of cumulative, 5.75%, $75 par value preferred stock outstanding, and 45,380 shares of common stock with a par value of $5.00 per share. (When working with currency, round to two decimal places immediately) Last year, the company failed to pay a dividend, but the board of directors would like to resume paying regular dividends this year; the Preferred Stock dividend was in arrears last year. The board has determined that $65,000 cash will be paid to preferred and common stockholders this year. A) Calculate the total amount to be paid to (1) preferred and (2) common stockholders. Aero Manufacturing Corporation has 6,240 shares of cumulative, 5.75%, $75 par value preferred stock outstanding, and 45,380 shares of common stock with a par value of $5.00 per share. (When working with currency, round to two decimal places immediately) Last year, the company failed to pay a dividend, but the board of directors would like to resume paying regular dividends this year; the Preferred Stock dividend was in arrears last year. The board has determined that $65,000 cash will be paid to preferred and common stockholders this year. A) Calculate the total amount to be paid to (1) preferred and (2) common stockholders.

Answer rating: 100% (QA)

To calculate the total amount to be paid to preferred and common stockholders we need to consider th... View the full answer