Respuesta :
Answer:
$78000 to Preferred stockholder and $144000 to common stockholder.
Explanation:
Given: Current common stock outstanding = $900000.
Current preferred stock outstanding=$300000.
Total Cash dividend to be distributed= $222000.
Dividend to be distributed at 10%.
As we know, preferred shareholder are given preference over common stockholder for dividend payment. Company has to pay dividend in arrear next year if they miss out paying dividend to preferrence shareholder in any particualr year.
First, lets compute the annual dividend of preferred stockholder.
As given, Dividends for one previous year are in arrears and dividend is issued at 10%.
∴ Preferrence stock dividend= [tex]\$ 300000\times 10\%[/tex]
Preferrence stock dividend= [tex]\$ 300000\times \frac{10}{100} = \$ 30000[/tex]
∴ Preferrence stckholder´s:
current year dividend to be paid is $30000
Arrear to be paid of previous year is $30000
Now, compute dividend to be paid to common stockholder.
Dividend to be paid to common stockholder= [tex]\$900000\times 10\%[/tex]
∴ Common stockholder´ dividend= [tex]\$ 900000\times \frac{10}{100} = \$ 90000[/tex]
As given, Total shareholder dividend to be paid is $222000 and it is fully participative and cumulative.
∴ Balance of total dividend= [tex]\$222000-(\$60000+\$90000)= \$2220000-\$150000[/tex]
Balance of total dividend=[tex]\$ 72000[/tex]
Next, distributing the balance of total dividend on pro rata basis.
Preferred stock= [tex]\frac{3}{12} \times \$72000= \$ 18000[/tex]
Common stock= [tex]\frac{9}{12} \times 72000=\$ 54000[/tex]
Finally, computing total dividend paid current year
Preferred stock= [tex]\$30000+\$30000+\$18000= \$78000[/tex]
Common stock= [tex]\$90000+\$54000= \$144000[/tex]
∴ $78000 to Preferred stockholder
$144000 to common stockholder
