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24 June, 22:27

Ltimate sportswear has $250,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. ultimate sportswear also has $650,000 of common stock outstanding. in the company's first year of operation, no dividends were paid. during the second year, the company paid cash dividends of $45,000. this dividend should be distributed as follows:

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  1. 24 June, 22:49
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    Ltimate sportswear has $250000 Interest is 8% = 0.08 Common stock is $650000 so the company cash divided is So the prefered stock diveded = 250000 * 8/100 = $ 10000 Common stock divided = 45000 - 10000 = 35000.
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