Since the preferred is not cumulative no dividend is owed for the prior year. For the current year each share of $100 preferred stock receives a dividend at 6%. That is $6 per share. With 3000 shares that is a total of $18,000 in preferred dividends. Back that out of the $100,000 total and that leaves $82,000 to be distributed over 100,000 shares.
The par value of the preferred is what you use to calculate the dividend.
b) $.82
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Yes.
A corporation has 3000 shares of 6% percent noncumulative preferred stock and 100,000 shares of common stock outstanding. Par value for each is $100. No dividends were paid last year, but this year a $100,000 dividend is paid . How much per share will each share of common stock receive?
a)$1.00
b)$.82
c)$6.00
Could someone explain how to correctly work through this problem
