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Assume the following capital structure: Preferred stock, 6%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for three prior years (2011-2013) .
Common stock, $100 par value, 2,000 shares issued and outstanding.
Total dividends declared and paid in 2014 were $50,000. How much of the 2014 dividend will be paid to the common stockholders assuming the preferred stock is cumulative?
Authority Relationships
The structured interactions between individuals within an organization based on hierarchal positions where one party has the right to direct others and expect compliance.
Team Approach
A collaborative working style where tasks and goals are approached collectively by a group, emphasizing teamwork and shared responsibilities.
Positive Consequence
A beneficial result of a particular action or condition, often used as a form of reinforcement.
Decentralization
The process of distributing or dispersing functions, powers, people, or things away from a central location or authority, often to achieve a more distributed and participatory form of decision-making or governance.
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