What amount of dividends should be paid to the common stock

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Frago Bankshares Corp has 5,000 shares of 6%, $100 par value, cumulative preferred stock. The preferred stock had been issued in 2008 during the Great Recession in the US and is still outstanding at year-end December 2019. As of the December 2015 year end there were no preferred dividends in arrears.

Since December 2016 the board of directors declared annual dividends as follows:

Declaration Date          Total Dividends Declared

December 2016                $20,000

December 2017               $25,000

December 2018               $35,000

December 2019                 $50,000

Question 1: Based on the dividend schedule shown above what amount of dividends should be paid to the Common Stock holders out of the $50,000 in dividends declared in 2019?

Reference no: EM132547835

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