Common stock authorized, Homer Corp became public on

Common stock authorized

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Reference no: EM13919301

Homer Corp became public on January 1, 2013 and issued the following stock for cash: 800,000 shares of $1 par value common stock authorized, 150,000 shares issued for $19 per share. 200,000 shares of $100 par value, 9.5% cumulative preferred stock authorized, 60,000 issued for $122 per share. No dividends were declared or paid during 2013. However, on 12/28/14, the board of directors of Homer declared dividends of $1,800,000, payable of February 12, 2015 to holders of record as of January 19, 2015. a. Use the Horizontal model to show the effects of the issuance of common and preferred stock. b. Of the total amount of dividends to be paid how much will preferred stockholders and common stockholders receive respectively?

Reference no: EM13919301

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