Seul inc. has 20,000, $0.30 preferred shares (book value of $100,000) and 50,000 common shares outstanding (book value of $500,000). No dividends were paid or declared during 2021 and 2022. The company wants to distribute $40,000 in dividends on December 31, 2023. How much dividend would be paid to each group of shareholders, preferred and common, respectively, assuming the preferred shares are cumulative and non-participating? 

Select one: 

a. $18,000; $22,000 

b. $6,000; $34,000 O 

c. SO; $40,000 

d. $20,000; $20,000

Answer rating: 100% (QA)

To determine how much dividend would be paid to each group of shareholders preferred and common we n... View the full answer