Kaldi Company has 15.000 shares of $10 par value. 5% cumulative preferred stock and 200.000 shares of $20 par value common stock outstanding. The company paid cash dividends of $5.000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is $5,000 A O 57.500.8O $10.000.CO $2.500.D O

Kaldi Company has 15.000 shares of $10 par value. 5% cumulative preferred stock and 200.000 shares of $20 par value common stock outstanding. The company paid cash dividends of $5.000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is $5,000 A O 57.500.8O $10.000.CO $2.500.D O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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CT, Inc. has 10,000 shares of 8% P50 par preference shares and 100,000 shares of P4par ordinary shares outstanding. Two years’ preference dividends are in arrears. It declared cash dividends large enough to pay preference dividend in arrears, the preference dividends for the current period, and a P1.50 dividend to ordinary. What is the total amount oft he dividend?
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