one company has $200,000 to distribute in dividends. There are 24,000 shares of preferred stock that earn dividends at $0.40 per share and 80,000 shares of common stock, How much money goes to preferred stockholders?
200000 - 24000(.40)
oops. That would be just 24000(.40)
thanks Steve
To determine how much money goes to preferred stockholders, we need to calculate the total dividend amount for preferred stockholders.
First, we find the total dividend amount for preferred stock by multiplying the number of preferred shares by the dividend per share:
Total dividend amount for preferred stock = Number of preferred shares * Dividend per share
Total dividend amount for preferred stock = 24,000 shares * $0.40/share
Total dividend amount for preferred stock = $9,600
Therefore, $9,600 goes to preferred stockholders.