Blowing rock inc. has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 30,000 shares of $1 par value common stock outstanding at december 31, 2017. there were no dividends declared in 2015. the board of directors declares and pays a $45,000 dividend in 2016 and in 2017. what is the amount of dividends received by the common stockholders in 2017?

Equity dividend for 2017 = $15,000

No other equity dividend is paid.

Explanation:

As for the information provided,

Preference shares when cumulative in nature holds a right of dividend, even for the year when no dividends are declared as the amount accumulates and stands as a liability.

In the given instance preference dividend for each year = $500,000 5% = $25,000

Therefore, preference dividend for each year = $25,000

Now, it will be paid prior to any dividend to equity.

for the year 2016

Dividend declared = $45,000

From this firstly preference dividend for 2015 will be paid = $45,000 - $25,000 = $20,000

Out of this again preference dividend for 2016 will be paid = $20,000 - $25,000 = - $5,000

Now this 5,000 will stand outstanding in the year 2017

Dividend of 2017 = $45,000

Payment to preference = $5,000 arrears + $25,000 for current year = $30,000

Balance for equity = $45,000 - $30,000 = $15,000

answer; ///the name of the central bank of the united states is called; ///the federal reserve known as the federal

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi