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$32,000 on the preferred dividends in arrears 2 years $16,000 on the preferred dividends in arrears in the current year preferred stock = 200,000 shares of 8% cumulative and participating, $10 par value common stock = 800,000 shares of $10 par value. The Company wants to issue $80,000 to the preferred stock holders, with a 15% participation. How much is the Company going to pay the common stockholders? How much is the total dividend payout?

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17y ago

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How do you Compute earnings per share?

Net income minus Preferred Dividends / Weighted-Average of Common Share Outstanding = Earning per share


What are the difference between ordinary share holder and preference share holder?

The three biggest difference between common and preferred shares are: 1) Preferred shareholders take priority over common shareholders in the event of a company is liquidated. 2) Preferred shareholders typically have more voting rights than common shareholders. 3) Preferred shares typically pay higher dividends than common shares.


What is the difference between Dividends per share and Earnings per share?

For my opinion Earning par share refer to a full dividend after expenses. But if we have prefered stock we need to seperate prefered stock dividends and take its balance for common stock dividends by:Earning per share = Balance after prefered stock dividends / Number of shareOne more Dividends per share refer to balance for common stcok after we seperate balance after prefered stock dividends to both side, common stockdividends and retained earning.Dividends per share = Common stock dividends / Number of shareis that right? if another have any ideas please let me know.Thanks.!


What are advantages and disadvantages of common stocks?

Common stock is the major type of stock that is issued, it is different from preferred stock in that preferred stocks receive the first part of a dividend payment. Common stock receives what is left over after all of the preferred stocks have received their share, if anything. The benefit comes when there is a large dividend paid, many times (depending on the terms) preferred stocks have a limit to what they will pay per share, but the common stocks do not have a limit, and share equally what is paid out after the preferred stock, so there is a great opportunity for gain when times are good and large dividends are paid. The disadvantage comes when smaller dividends are paid, these stocks may receive only a little portion or even nothing from the dividend payment after the preferred stocks receive their shares. Common stock also come with voting rights to which preferred stocks may not entitle the owner.


Kuhns Corp. has 200000 shares of preferred stock outstanding that is cumulative and 100000 common stock outstanding. The preferred dividend is 3.00 per share and has not been paid for three years. If?

Kuhns Corp. owes its preferred shareholders a total of $600,000 in unpaid dividends, calculated as 200,000 shares multiplied by $3.00 per share for three years. Consequently, before any common stockholders can receive dividends, the company must first pay off this accumulated preferred dividend. Only after satisfying this obligation can any remaining earnings be distributed to the 100,000 shares of common stock outstanding.

Related Questions

How do you Compute earnings per share?

Net income minus Preferred Dividends / Weighted-Average of Common Share Outstanding = Earning per share


Market price per share of common stock?

Market price per share of common stock is a calculated metric used to determine if the price of a stock is a good buy. The market price per share is calculated by taking the net income of a company and subtracting the preferred dividends and number of common shares outstanding.


When claculating eps if there are 5000 shares issued and 100 of these are preferred there was no preferred stock dividends would the earnings per share include the 100 shares of preferred stock?

No, earnings per share is calculated using only common shares outstanding.


What are the difference between ordinary share holder and preference share holder?

The three biggest difference between common and preferred shares are: 1) Preferred shareholders take priority over common shareholders in the event of a company is liquidated. 2) Preferred shareholders typically have more voting rights than common shareholders. 3) Preferred shares typically pay higher dividends than common shares.


What is the difference between Dividends per share and Earnings per share?

For my opinion Earning par share refer to a full dividend after expenses. But if we have prefered stock we need to seperate prefered stock dividends and take its balance for common stock dividends by:Earning per share = Balance after prefered stock dividends / Number of shareOne more Dividends per share refer to balance for common stcok after we seperate balance after prefered stock dividends to both side, common stockdividends and retained earning.Dividends per share = Common stock dividends / Number of shareis that right? if another have any ideas please let me know.Thanks.!


What are advantages and disadvantages of common stocks?

Common stock is the major type of stock that is issued, it is different from preferred stock in that preferred stocks receive the first part of a dividend payment. Common stock receives what is left over after all of the preferred stocks have received their share, if anything. The benefit comes when there is a large dividend paid, many times (depending on the terms) preferred stocks have a limit to what they will pay per share, but the common stocks do not have a limit, and share equally what is paid out after the preferred stock, so there is a great opportunity for gain when times are good and large dividends are paid. The disadvantage comes when smaller dividends are paid, these stocks may receive only a little portion or even nothing from the dividend payment after the preferred stocks receive their shares. Common stock also come with voting rights to which preferred stocks may not entitle the owner.


What are advantages and disadvantages of stocking?

Common stock is the major type of stock that is issued, it is different from preferred stock in that preferred stocks receive the first part of a dividend payment. Common stock receives what is left over after all of the preferred stocks have received their share, if anything. The benefit comes when there is a large dividend paid, many times (depending on the terms) preferred stocks have a limit to what they will pay per share, but the common stocks do not have a limit, and share equally what is paid out after the preferred stock, so there is a great opportunity for gain when times are good and large dividends are paid. The disadvantage comes when smaller dividends are paid, these stocks may receive only a little portion or even nothing from the dividend payment after the preferred stocks receive their shares. Common stock also come with voting rights to which preferred stocks may not entitle the owner.


Kuhns Corp. has 200000 shares of preferred stock outstanding that is cumulative and 100000 common stock outstanding. The preferred dividend is 3.00 per share and has not been paid for three years. If?

Kuhns Corp. owes its preferred shareholders a total of $600,000 in unpaid dividends, calculated as 200,000 shares multiplied by $3.00 per share for three years. Consequently, before any common stockholders can receive dividends, the company must first pay off this accumulated preferred dividend. Only after satisfying this obligation can any remaining earnings be distributed to the 100,000 shares of common stock outstanding.


Which 3 kinds of preference share options can be classified as equity?

Redeemable preferred stock, Common stock, Employee stock options can be termed as equity in the financial market. If dividends are not continuously paid for 2 months the preferred stock can have equity rights like common stock


If you owned preferred stock in an ice cream manufacturer what would you be entitled to a.receive dividends before common stockholders.b.make decisions on overall policy.c.have one vote per share owne?

A. ...receive dividents before common stockholders


What kind of stocks are there?

Common stocks are shares that have voting rights which means important company issues are voted upon within these stocks and may receive dividends. Preferred stocks are none voting stocks but are first in line for dividends if a company dissolves. Class A stocks are public common stocks and they carry one vote per share. Class B stocks are worth 10 votes per share and have more control over companies.


What are preferred shareholders?

Preferred shareholders are the people who own a company's preferred stock. Corporations can issue several types of stock. If there are profits, the corporation the corporation may pay dividends. The company would pay the same amount to each share of stock. However, the company may have issued two types of stock, preferred and common. Preferred stock gets a percentage of the face value as a dividend say 5%. Common stock gets a percentage of the profits that are left. So if a person has a $100 share of preferred, and the company declares a dividend, the preferred shareholders are paid first. He gets his $ 5.00 first. He is a preferred shareholder. The rest of the dividend is divided among the common shareholders. So Preferred Shareholders get paid first. Their dividend will never go up. It will go down if the company does not pay its dividend.