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

question 60

Essay

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend in the current year:
$\begin{array}{|l|r|}\hline \text { Preferred stock, } \$ 100 \text { par, } 6 \%, 5,000 \text { shares issued } & \$ 500,000 \\\hline \text { Common stock, } \$ 10 \text { par, } 70,000 \text { shares issued } & 700,000 \\\hline \text { Total } & \$ 1,200,000 \\\hline\end{array}$

Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.

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Definitions:

Birth Order

The chronological order of sibling births in a family, which is sometimes believed to influence personality and behavior.

Adler

Alfred Adler, an Austrian medical doctor and psychotherapist who is best known for introducing the concept of the "inferiority complex" and emphasizing the importance of feelings of inferiority in the personality development.

Superiority

The condition or quality of being superior or having a higher status, ability, or quality compared to others.

Humanistic Perspective

A psychological approach that emphasizes the study of the whole person and the inherent goodness and personal growth potential of individuals.