Money Forum World

dragon77 · Joined: 08 Nov 2007 Posts: 2167

Irving company has an remaining issue of prefered stock with an $80 par value and an 11% yearly dividened.
a.what is the yearly dollar dividened.
b.if the prefered stock is noncumulative and the board of directors passed the preferd dividened for the last three years,how much must be paid to prefered stockholders before dividened are paid to the common stockholders.
c.if the prefered stock is accumulative, and the board of directors passed the prefered dividend for the last three years, how much must be paid to prefered stockholders before dividends are paid to common stock holders

Sasha Pennington · Joined: 08 Nov 2007 Posts: 2143

a. compute dividend depending on the nominal value at par, so $80 11%=..
b. it must be paid just what has been agreed at the current AGM
c. in this circumstance a three yr dividend must be paid