Ltimate sportswear has $250,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. ultimate sportswear also has $650,000 of common stock outstanding. in the company's first year of operation, no dividends were paid. during the second year, the company paid cash dividends of $45,000. this dividend should be distributed as follows:

Respuesta :

Ltimate sportswear has $250000 Interest is 8% = 0.08 Common stock is $650000 so the company cash divided is So the prefered stock diveded = 250000 * 8/100 = $ 10000 Common stock divided = 45000 - 10000 = 35000.