Preferred stocks

Harry Potter Corporation had the following stocks issued and outstanding when the board of directors proposed a $150,000 dividend:
Preferred stock: 45,000 shares issued and 40,000 shares outstanding, 8 percent, $10 par value Common stock: 60,000 shares issued and 50,000 outstanding, $1 par value

Required:

Don't use plagiarized sources. Get Your Custom Essay on
Preferred stocks
Just from $13/Page
Order Essay

A. Determine the amount of dividends each class of stock would receive given the following assumptions:

1. Preferred stock is noncumulative.

2. Preferred stock is cumulative (one year in arrears).

3. Preferred stock is cumulative (two years in arrears).

B. What is the dividend per share for preferred and common stock in each of the scenarios described in part A?

Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.