Huge Corporation has issued 3,000, $7 noncumulative preferred shares and 10,000 common shares. Dividends have not been paid on the preferred shares for the current and one prior year. Huge has recently prospered, and the board of directors has voted to payout $49,000 from retained earnings in cash dividends. Once the $49,000 is paid out, how much would the preferred and common shareholders receive per share? A. $14.00 per share preferred, $0 per share common. B. $7 per share preferred, $2.80 per share common. C. $0 per share preferred, $4.90 per share common. D. $14.00 per share preferred, $0.70 per share common. E. $12.25 per share preferred, $0.23 per share common.
Huge Corporation has issued 3,000, $7 noncumulative preferred shares and 10,000 common shares. Dividends have not been paid on the preferred shares for the current and one prior year. Huge has recently prospered, and the board of directors has voted to payout $49,000 from retained earnings in cash dividends. Once the $49,000 is paid out, how much would the preferred and common shareholders receive per share?
A. $14.00 per
B. $7 per share preferred, $2.80 per share common.
C. $0 per share preferred, $4.90 per share common.
D. $14.00 per share preferred, $0.70 per share common.
E. $12.25 per share preferred, $0.23 per share common.
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