Computation of the preference dividend before declaring

Reference no: EM1311082

Computation of the Preference dividend before declaring the common dividend.

Tri-State Industries has both common and noncumulative preferred stock outstanding. The dividends on these stocks are $1.35 each quarter for the common and $2.10 each quarter for the preferred. The company has not paid any dividends for the past three quarters but is expected to pay dividends on both the common and the preferred stock next week. What is the minimum amount the firm must pay per share to its preferred stockholders next week if it plans to pay a common dividend?

a) $0

b) $2.10

c) $4.20

d) $6.30

e) $8.40

Reference no: EM1311082

Questions Cloud

Why validity is harder to establish and evaluate : Explain why validity is harder to establish and evaluate than reliability.

Basic science concepts in optics : Basic science concepts in optics like Which types of electromagnetic radiation can be seen from the surface of Earth.

Show increase in sales related to the increase in inventory : Increase in sales related to the increase in inventory- is the increase in sales related to the increase in inventory?

True or false questions on monopoly and perfect competition : Perfect competition guarantees allocative efficiency. A profit-maximizing monopolist can never be allocatively efficient.

Computation of the preference dividend before declaring : Computation of the Preference dividend before declaring the common dividend and What is the minimum amount the firm must pay per share to its preferred stockholders

Find each project''s payback period : Find Reed's cost of not taking the suppliers' discounts and What is each project's payback period

Violation of today''s ethical research practices : Summarize a research study which was conducted before the institution of National Research Act of the year 1974. Describe how the study would be in violation of today's ethical research practices.

Evaluate each project''s net present value : Calculating the project's net present value and evaluate each project's net present value

Finding optimal weekly output and price of firm : Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.

User Account

All Pages