Determine the amount of cash dividend will be paid to preferred and common stockholders.

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Chapter 8, Problem 16SEB

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Determine the amount of cash dividend will be paid to preferred and common stockholders.

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Which one is correct? A corporation has 10,000 shares of 7%, $50 par preferred stock outstanding and 130,000 shares of no-par common stock outstanding. Dividends in arrears are $42,500. At the end of the current year, the corporation declares a dividend of $90,000. What is the dividend allocated between preferred and common shareholders? A.The dividend is allocated $12,500 to preferred and $77,500 to common. B. The dividend is allocated $35,000 to preferred and $55,000 to common. C. The dividend is allocated $90,000 to preferred and $0 to common. D. The dividend is allocated $77,500 to preferred and $12,500 to common.

8. The following is the abstract of the shareholders’ equity of Shake Corporation before the declaration of cash dividends: (see attached image for the give. please answer it. thank you so much) The Board declared dividends of P900,000. No dividends were distributed last year. Direction: Determine how much dividends the preference and ordinary shares will receive given the following independent situations:a. the preference share is non-cumulative and non-participatingb. the preference share is participating c. the preference share is cumulatived. the preference share stock is both cumulative and participating e. the preference share is participating only up to 15%

All of the following statements pertain to dividends. Which of them is (are) true? a. Shareholders vote each year to declare and set the amount of the dividends to be paid.b. Dividends Payable is a current liability in the statement of financial position of the corporation.c. A 10% dividend on preference share capital means that each shareholder receives a cash dividend equal to 10% of the market value of the stock.d. All of these statements are true.