How much will the common stockholders receive

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Question - Bramble Corp. has outstanding 605000 shares of $2 par common stock and 125000 shares of no-par 5% preferred stock with a stated value of $5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year.

Assuming that $234000 will be distributed as a dividend in the current year, how much will the common stockholders receive?

a. $171500.

b. $202750.

c. Zero.

d. $140250.

Reference no: EM132535652

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