Ask Question
17 February, 19:17

Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 99,000 shares of $14 par common stock. 8,000 shares of $80 par, 4 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 8,000 shares of preferred stock and a $4 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required a. Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders.

+2
Answers (1)
  1. 17 February, 20:26
    0
    Total dividends is $421,600.00

    Explanation:

    Preferred shareholders' dividend=preferred shares value*4%

    preferred shares value=8000*$80

    =$640,000

    Preferred shareholders' dividend=$ 640,000.00*4%

    =$25,600.00

    Common shareholders' dividend = number of shares*dividend per share

    number of shares is 99,000

    dividend per share is $4

    Common shareholders' dividend = 99000*$4

    =$396,000.00

    Total dividends=Common shareholders' dividend+Preferred shareholders' dividend

    Total dividends=$25,600.00 + $ 396,000.00

    =$ 421,600.00
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 99,000 shares of $14 par common stock. 8,000 shares ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers