AYZ Corp pays its cumulative preferred stockholders $2.10 [er share. XYZ has 10,000 shares of preferred and 65,000 shares of common. In the past three years, due to slowdowns in the economy, XYZ paid no dividends. Now this year, the board of directors decided to pay out $600,000 in dividends. How much of the $600,000 does each class of stock receive as dividends?

AYZ Corp pays its cumulative preferred stockholders $2.10 [er share. XYZ has 10,000 shares of preferred and 65,000 shares of common. In the past three years, due to slowdowns in the economy, XYZ paid no dividends. Now this year, the board of directors decided to pay out $600,000 in dividends. How much of the $600,000 does each class of stock receive as dividends?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 5P

See similar textbooks

Similar questions

NMB CORPORATION HAS 5,000,000 ORDINARY SHARES AND 1,000,000 SHARES OF 6% P100 PAR VALUE CUMULATIVE PREFERENCE SHARES. DURING THE RECESSION OF THE PAST TWO YEARS, NMB SUSPENDED ALL DIVIDEND PAYMENTS. THIS YEAR NMB RETURNED TO PROFITABILITY, AND THE BOARD OF DIRECTORS DECLARED A P1 PER SHARE ORDINARY SHARES DIVIDEND TO BE PAID AT THE END OF THE YEAR. HOW MUCH WOULD NMB HAVE TO PAY IN DIVIDENDS THIS YEAR? 5,0000 11,000,000 17,000,000 23,000,000
The Jennings Group reacquired 2 million of its shares at $70 per share as treasury stock. Last year, for the first time, Jennings sold 1 million treasury shares at $71 per share. By what amount will Jennings’ retained earnings decline if it now sells the remaining 1 million treasury shares at $67 per share?
The Glendora Company has 200,000 shares of cumulative, five percent, $100 par value preferred stock outstanding. Last year the company failed to pay its regular dividend, but the board of directors would like to resume paying its regular dividend this year. How would I Calculate the dividends in arrears and the total dividend that must be paid this year.
Colliers, Inc., has 100,000 shares of cumulative preferred stock outstanding. The preferred stockpays dividends in the amount of $2 per share, but because of cash flow problems, the companydid not pay any dividends last year. The board of directors plans to pay dividends in the amount of$600,000 this year. What amount will go to preferred stockholders? How much will be availablefor common stock dividends?
When Microsoft went public, the company sold 2 million new shares (the primary issue). In addition, existing shareholders sold 0.9 million shares (the secondary issue) and kept 22.8 million shares. The new shares were offered to the public at $24, and the underwriters received a spread of $1.51 a share. At the end of the first day's trading, the market price was $38 a share. a. How much money did the company receive before paying its portion of the direct costs? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. How much did the existing shareholders receive from the sale of their shares before paying their portion of the direct costs? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) c. If the issue had been sold to the underwriters for $33 a share, how many shares would the company have needed to sell to raise the same amount of cash? (Do not round intermediate calculations. Enter…
NEED ASAP. Solve correctly and show your computations. ABC Corporation earned P540,000 during the year. The shareholder’s equity is composed of 30,000, P10 par value ordinary shares and 20,000,P30 par value 10% cumulative preference shares throughout the year. The board of directors decided not to declare dividends to help the company recover from the effects of pandemic. How much is the earnings per share presented in the financial statement?
Best-Cost Corporation issues 5 million shares of common stock and100,000 shares of 6 percent cumulative preferred stock at $100 par. Thecorporation has not paid any dividend during the previous 3 years. Theboard of directors decides to pay $5 million in dividends for the currentyear.a. How much in dividends is paid for each share of preferred stock?b. What is the total amount of dividends paid to preferred stockholders?c. How much is the dividend payment for each share of common stock?d. What is the total amount of dividends paid to common stockholders?
Huge Corporation has issued 3,000, $7 noncumulative preferred shares and 10,000 common shares. Dividends have not been paid on the preferred shares for the current and one prior year. Huge has recently prospered, and the board of directors has voted to payout $49,000 from retained earnings in cash dividends. Once the $49,000 is paid out, how much would the preferred and common shareholders receive per share? A. $14.00 per share preferred, $0 per share common. B. $7 per share preferred, $2.80 per share common. C. $0 per share preferred, $4.90 per share common. D. $14.00 per share preferred, $0.70 per share common. E. $12.25 per share preferred, $0.23 per share common.
Papasa Ka Sa Quali Corporation earned P540,000 during the year. The shareholder’s equity is composed of 30,000, P10 par value ordinary shares and 20,000,P30 par value 10% cumulative preference shares throughout the year. The board of directors decided not to declare dividends to help the company recover from the effects of pandemic. How much is the earnings per share presented in the financial statement?
Papasa Ka Sa Quali Corporation earned P540,000 during the year. The shareholder's equity is composed of 30,000, P10 par value ordinary shares and 20,000,P30 par value 10% cumulative preference shares throughout the year. The board of directors decided not to declare dividends to help the company recover from the effects of pandemic. How much is the earnings per share presented in the financial statement? (2 Points)
Kuhns Corp. has 200,000 shares of preferred stock outstanding that is cumulative and 100,000 common stock outstanding. The preferred dividend is $3.00 per share and has not been paid for three years. If Kuhns earned $1 million this year, what could be the maximum payment to the preferred stockholders on a per share basis? a. $5.00 per share b. $15.00 per share c. 6.00 per share d. 9.00 per share
Waterway Inc. declared a $76000 cash dividend. It currently has 2500 shares of 6%, $100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How much cash will Waterway distribute to the common stockholders? $46000. $30000. $61000. None of these answers are correct.