Paloma Corporation Had 5,000 Shares of $100 Par Value, 9

question 56

Essay

Paloma Corporation had 5,000 shares of $100 par value, 9 percent cumulative preferred stock and 30,000 shares of $10 par value common stock outstanding during each of its first four years of operation. The following amounts of cash dividends were paid during the years indicated: 2007 , $0; 2008 , $80,000; 2009 , $220,000; 2010 , $270,000. Determine the cash dividends per share paid to the preferred and common stockholders during each of the four years.

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Definitions:

Stockholders

Individuals or entities that own shares of stock in a corporation, having ownership interest in the company.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares held by insiders and company officers.

Stockholders

Individuals or entities that own shares in a corporation, thereby having ownership interest.

Authorized Shares

The highest quantity of shares that a company is authorized to issue according to its articles of incorporation.