Kaldi Company has 20.000 shares of $10 par value, 5 cumulative preferred stock and 200,000 shares of $20 par value common stock outstanding, The company paid total cash dividends of $8,000 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: OA $10.000. O B. $12,000. OC. S8.000. D.$2.000.

Kaldi Company has 20.000 shares of $10 par value, 5 cumulative preferred stock and 200,000 shares of $20 par value common stock outstanding, The company paid total cash dividends of $8,000 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: OA $10.000. O B. $12,000. OC. S8.000. D.$2.000.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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?
XYZ Company has 100,000 shares of stock outstanding. On January 1, 200X XYZ Company declared a cash dividend of .50 per share to be paid on January 31. On January 1 XYZ Company will make the following journal entry: Credit cash $50,000and debit dividends declared $50,000. Debit dividends declared $50,000 and credit dividends payable $50,000. No entry is made until January 31. Debit cash $50,000 and credit dividends payable $50,000.
Master Company has 10,000 preferred shares with 2% cumulative dividends with a par value per share of $ 50 and 25,000 common shares at $ 75 par. The company declares the following cash dividends: Year 1 $ 30,000 Year 2 6,000 Year 3 80,000 Required: Determine the dividends for the preferred and common shares for each year. Present your answer graphically and clearly.
Wildcat, Inc. declared a 10% stock dividend when it had 250,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $10 per share when the dividend was declared. The entry to record the stock dividend would include a credit to: O Common Stock $250.000. O Retained Earnings $250,000. O Retained Earnings $25,000. O Additional Paid in Capital $250,000. O None of the above.
Torino Company has 10,000 shares of $5 par value, 4% cumulative preferred stock and 100,000 shares of $10 par value commo outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid preferred stockholders in the second year before any dividend is paid to common stockholders is: Multiple Choice $2,000. $0. $3,000. $1,000.
A company had 125.000 shares of commaon stock outstanding on January 1 and then sold 35,000 additionsl shares on March 30. Net income for the year was $594.750. What are eamings per share? Select one O a S0.01. O S4.58. O c. 54.73. Od. $3.03.
Thunder Yard's total stockholders' Equity is P5,600.000, comprised of the following: • P1,000,000 in 8% cumulative preferred stock consisting of shares of P100 par value • P1,800,000 in Ordinary Shares of P5 par value per share issued at P8 • P1,600,000 in additional Paid in capital P1,200,000 in retained earnings There is a Dividend in Arrears for 2 years 1. Compute for Number of shares of Preferred Stock 2. Compute for Additional Paid In Capital: Preferred Stock 3. Book Value Per Share Ordinary Shares (Round-off Answer to two decimal places)
17. Graniel Couture has $260,000 of 8% noncumulative, preferred stock outstanding. Graniel Couture also has $80,000 of common stock outstanding. The company paid cash dividends of $56,000 during the year. This dividend should be distributed as follows: a. $20,800 common; $35,200 preferred; b. $56,000 preferred; $0 common. c. $20,800 preferred; $35,200 common. d. $0 preferred; $56,000 common. e. $28,000 preferred; $28,000 common.
1.Comfort Mattresses, Inc. sold 26,000 shares of its P1 par value common stock at a cash price of 12 per share. The entry to record this transaction would be? 2.Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a 10 par value and 3,000 shares of common stock with a 1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared year 1 P 20,000 year 2 P 6,000 year 3 P 32,000 The amount of dividends paid to preferred and common shareholders in year 1 is:
If my company has in my capital(equity accounts common stock($1 par, 100,000 shares outstanding) $ 100,000 additional paid in capital 200,00 retained earnings 225,000 the board of director has declared a 20 percent stock dividend on january 1 and a 0.25 cash dividend on marz 1. what changes occur in the capital account after each transation if the price of the stock is $4
The following is from BC Corp. balance sheet: Common Stock (1 million shares) Retained Earnings $15,000,000 15,000,000 30,000,000 Additional information: Earnings = $6,600,000 P/E ratio = 20 a. What is the impact on the B/S if the firm declares a 10% stock dividend? b. What is the value of the stock dividend to an investor who owns 100 shares?

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