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?

Question

Mylie Barnett

Business

14 August, 09:44

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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Kendrick Prince · Answer 1

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