Question

Peabody, Inc. has 5,000 shares of 7%, $100 par value, cumulative preferred stock and 50,000 shares...

Peabody, Inc. has 5,000 shares of 7%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. If the board of directors declares a $30,000 dividend, the

a. preferred shareholders will receive 1/10th of what the common shareholders will receive.

b. preferred shareholders will receive the entire $30,000.

c. $30,000 will be held as restricted retained earnings and paid out at some future date.

d. preferred shareholders will receive $15,000 and the common shareholders will receive $15,000.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Lopez, Inc. has 2,000 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares...
Lopez, Inc. has 2,000 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2019, and December 31, 2020. The board of directors declared and paid a $3,000 dividend in 2019. In 2020, $15,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2020? Group of answer choices a. Preferred stockholders get $4,000 and Common stockholders get $11,000 b....
Bramble Corp. has 11000 shares of 5%, $100 par value, cumulative preferred stock and 22000 shares...
Bramble Corp. has 11000 shares of 5%, $100 par value, cumulative preferred stock and 22000 shares of $1 par value common stock outstanding at December 31, 2017. There were no dividends declared in 2015. The board of directors declares and pays a $99000 dividend in 2016 and in 2017. What is the amount of dividends received by the common stockholders in 2017? $33000. $0. $44000. $5500
Kirchner Company has 50,000 shares of $10 par value, 6% preferred stock and 300,000 shares of...
Kirchner Company has 50,000 shares of $10 par value, 6% preferred stock and 300,000 shares of $1 par value common stock outstanding. As of December 31, 2018, it had $900,000 of Retained earnings. On December 31, 2019, the Board of Directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared in 2017 and 2018 and no dividends were in arrears prior to 2017. The company is considering the following options. Option...
Norton, Inc. has 10,000 shares of 6%, $100 par value, noncumulative preferred stock and 100,000 shares...
Norton, Inc. has 10,000 shares of 6%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2020, and December 31, 2021. The board of directors declared and paid a $50,000 dividend in 2020. In 2021, $110,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2021?
Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value,...
Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding 100,000 Retained earnings 370,000 Total stockholders' equity $ 520,000 1. What are the par values of the corporation’s preferred stock and its common stock? Par Value Corporation's preferred stock Corporation's common stock 2. If no dividends are in arrears at the current date, what is the...
Assume CGM Corp has issued and outstanding 22,000 shares of 5%, $25 par value preferred stock...
Assume CGM Corp has issued and outstanding 22,000 shares of 5%, $25 par value preferred stock and issued and outstanding 15,000 shares of $15 stated value common stock. The board of directors declares dividends of $100,000 on December 15, 2020, the preferred stock is cumulative, and dividends paid to the preferred stockholders has been as follows: 2017 - $13,750; 2018 - $21,250; and 2019 - $15,000. What amount is allocated to common stockholders?
Question 6 Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and...
Question 6 Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2012. The board of directors declares and pays a $120,000 dividend in 2013. What is the amount of dividends received by the common stockholders in 2013? A. $20,000 B. $50,000 C. $70,000 D. $0
Sandpiper Company has 15,000 shares of cumulative preferred 3% stock, $100 par and 50,000 shares of...
Sandpiper Company has 15,000 shares of cumulative preferred 3% stock, $100 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends: Year 1 $112,500 Year 2 22,500 Year 3 135,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.
Burkert Company has​ 50,000 shares of​ $1 par value common stock issued and outstanding. The company...
Burkert Company has​ 50,000 shares of​ $1 par value common stock issued and outstanding. The company also has 2 comma 000 shares of​ $100 par​ value, 5​% cumulative preferred stock outstanding. Burkert did not pay the preferred dividends in 2018 and 2019. For the common stockholders to receive a dividend in​ 2020, the board of directors must declare dividends in excess​ of: A. $ 20 comma 000$20,000. B. $ 40 comma 000$40,000. C. $ 30 comma 000$30,000. D. $ 10...
Windborn Company has 30,000 shares of cumulative preferred 1% stock, $50 par and 50,000 shares of...
Windborn Company has 30,000 shares of cumulative preferred 1% stock, $50 par and 50,000 shares of $25 par common stock. The following amounts were distributed as dividends: Year 1 $30,000 Year 2 6,000 Year 3 45,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT