Marine corporation issued common stock in year 1. it issued 10,000 shares of 10%, $100 par value noncumulative preferred stock for $110 per share at the beginning of year 3. it did not pay any dividends in year 3 or year 4. in december of year 5, it declares total dividends of $250,000. how much will the common stockholders of marine corporation receive as dividends in year 5? a. $150,000,
b. $250,000,
c. $50,000,
d. $100,000.

Dividend paid to preferred stock holders

= 10% x $100 x 10,000 shares = $100,000

Dividend paid to common stock holders

= $250,000 - $100,000

= $150,000

The correct answer is A

Explanation:

First and foremost, there is need to calculate the dividend paid to preferred stock holders, which is a function of dividend rate, par value and number of preferred stocks outstanding.

Finally, we will calculate dividend paid to common stockholders by deducting preferred dividend from the total dividend declared.

i might look it up later.