A Corporation Had the Following Stock Outstanding When the Company's

question 90

Essay

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend during the current year:
$\begin{array}{|l|r|}\hline \text { Preferred stock, } \$ 100 \text { par, } 6 \%, 5,000 \text { shares issued } & \$ 500,000 \\\hline \text { Common stock, } \$ 10 \text { par, } 75,000 \text { shares issued } & \underline{750,000} \\\hline \text { Total } & \$ 1,250,000 \\\hline\end{array}$ Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and dividends are one year in arrears.

---

Definitions:

Social Relationship

Connections or associations between two or more individuals influenced by social context, including friendships, family ties, and professional interactions.

System of Authority

The organized and structured arrangement of power within a society, where rules and decisions are made.

Ideal Types

A concept developed by Max Weber, referring to an analytical framework that defines the purest version of a social phenomenon, without the influence of external factors.

Max Weber

A German sociologist, philosopher, and political economist known for his theories on the rationalization of society and his analysis of the structure of authority.