Distributing Dividends

Distributing Dividends Belson Corporation has 10,000 common shareholders and 5,000 preferred shareholders. The preferred stock has a $5 dividend rate. Two years of dividends are currently in arrears. Assume that the preferred stock is cumulative. Belson has $155,000 to distribute in the form of dividends. Use this information to calculate the dividends distributed to the preferred and common shareholders Preferred Shareholders Common Shareholders Dividend in arrears Regular dividend Remainder Total dividend paid Per share dividends