Reference no: EM133028872

Question - A corporation has outstanding 3,000 shares of 8%, cumulative, preferred stock, $50 par value, and 20,000 shares of $25 par value common stock. No dividends are in arrears from previous years. If the board declares $50,000 in dividends this year, how much goes to each class of stock?

Preferred $ 8,000, common $42,000

Preferred $24,000, common $26,000

Preferred $12,000, common $38,000

Preferred $50,000, common $0