Universe Corporation has 240,000 shares of $5 par value common stock and 3,000 shares of cumulative 6%, $100 par preferred stock outstanding

Accounting Jan 18, 2021

Universe Corporation has 240,000 shares of $5 par value common stock and 3,000 shares of cumulative 6%, $100 par preferred stock outstanding. If Universe did not pay a dividend for the last two years, but declared a dividend this year, how much will they have to declare in order for the common stockholders to receive $.45 per share. Select one: O a. $144,000 b. $126,000 O c. $ 108,000 O d. $162,000

Expert Solution

Common Stock = 240,000 shares of $ 5 each

Dividend share per common stock = $ 0.45

There fore Dividend need to declared = 240,000*.45

= $ 108,000

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