year 1 Year 1 Acme Labs has 10,000 shares of preferred stock (cummulative, 5% 5100 par...

  

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year 1 Year 1 Acme Labs has 10,000 shares of preferred stock (cummulative, 5% 5100 par value and 1000,000 shares of common stock outanding. The company paid $40,000 in dividends this year. How much is arrears for the preferred? Preferred Par Rate Divident Shares Total Pref. Div Dividends Paid Dividens in Arrears 100 5% 5 10,000 50,000 40000 10,000 Year 2: Due to slow sales, Acme paid out $40,000 again in dividends. How much are in arrears? Par Rate Divident Shares Total Pref. Div Dividends Paid Dividens in Arrears year 2 Dividends Total Div Due Div Paid Div in arrears year 1 Year 1 Acme Labs has 10,000 shares of preferred stock (cummulative, 5% 5100 par value and 1000,000 shares of common stock outanding. The company paid $40,000 in dividends this year. How much is arrears for the preferred? Preferred Par Rate Divident Shares Total Pref. Div Dividends Paid Dividens in Arrears 100 5% 5 10,000 50,000 40000 10,000 Year 2: Due to slow sales, Acme paid out $40,000 again in dividends. How much are in arrears? Par Rate Divident Shares Total Pref. Div Dividends Paid Dividens in Arrears year 2 Dividends Total Div Due Div Paid Div in arrears

Answer rating: 100% (QA)

Based on the information provided it seems there is an error in the calculation of dividends in arrears for the preferred stock Lets recalculate it Pr... View the full answer