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28 June, 19:33

Healthy Farmer, Inc. has 41 comma 000 shares of common stock outstanding and 5 comma 000 shares of preferred stock outstanding. The common stock is $ 0.08 par value; the preferred stock is 4 % noncumulative with a $ 100.00 par value. On October 15, 2019, the company declares a total dividend payment of $ 54 comma 000. What is the total amount of dividends that will be paid to the common stockholders?

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  1. 28 June, 23:07
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    available for common stock holders 34,000

    Explanation:

    The common stock holders are being paid after the preferred stock.

    So we must first calculate and subtract the preferred stock.

    5,000 preferred stock x $100 par x 4% = 20,000

    declared dividends 54,000

    preferred dividends (20,000)

    available for common stock holders 34,000
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