Question Details

What is the amount of dividends received by the common stockholders 



1.	Somento Forest Inc. has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?
a.	$60 per share
b.	$60,000 in total
c.	$100,000 in total
d.	$0.60 per share


	2.	River Forest, Inc., has 5,000 shares of 6%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. If the board of directors declares a $100,000 dividend, the
a.	preferred stockholders will receive 1/10th of what the common stockholders will receive.
b.	preferred stockholders will receive the entire $100,000.
c.	$30,000 will be held as restricted retained earnings and paid out at some future date.
d.	preferred stockholders will receive $30,000 and the common stockholders will receive $70,000.


	3.	Dabney, Inc., has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $60,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014?
a.	$0
b.	$25,000
c.	$10,000
d.	$35,000


4.	Laser Inc., has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2014, and December 31, 2013. The board of directors declared and paid a $2,500 dividend in 2013. In 2014, $12,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2014?
a.	$8,500
b.	$6,000
c.	$3,500
d.	$3,000

5.	Art, Inc., has 2,500 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding from December 31, 2013 through Dec. 31, 2015. There were no dividends declared in 2013. The board of directors declares and pays a $22,500 dividend in 2014 and in 2015. What is the amount of dividends received by the common stockholders in 2015?
a.	$7,500
b.	$12,500
c.	$22,500
d.	$0




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