Question

A corporation has shares of ​% preferred stock outstanding.​ Also, there are shares of common stock outstanding. Par value for each is​ $100. If dividend is​ paid, how much goes to the preferred​ stockholders?

Answer 1

$600,000

Step-by-step explanation:

Calculation for how much goes to the preferred​ stockholders

Using this formula

Preferred​ stockholders=Number of preferred shares outstanding * Preferred stock par value * Percentage of Annual dividend

Let plug in the formula

Preferred​ stockholders=50,000 x $100 x 0.12

Preferred​ stockholders= $600,000

Therefore If dividend is​ paid the amount of $600,000 goes to the preferred​ stockholders