Cheyenne corp. has 8500 shares of 5%, $100 par value, cumulative preferred stock and 17000 shares of $1 par value common stock outstanding at december 31, 2017. there were no dividends declared in 2015. the board of directors declares and pays a $76500 dividend in 2016 and in 2017. what is the amount of dividends received by the common stockholders in 2017?

The correct answer is $25,500.

Explanation:

Cheyenne Corp. has 8500 shares of 5%, $100 par value, cumulative preferred stock and outstanding common stock of 17000 shares of $1 par value at December 31, 2017.  

There was no dividend in 2015.

In 2016 and 2017, the dividend paid is $76500.

The previous year preference dividend payable is

=previous year preferred dividend payable+current year preferred dividend payable-total dividend paid in 2016

=(8500*100*0.05)+(8500*100*0.05)-76500

=$(42500+42500-76500)

=$8500

The dividend received by the stockholders in 2017 will be

=total dividend paid in 2017-current year preferred dividend-previous year preference dividend payable

=$(76500-42500-8500)

=$25,500

answer; limited pay life;

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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