Ardent Inc had 1,000 shares of $100 par, 6% preferred stock outstanding, as well as 100,000 shares of $.01 par common stock On March 31, 1996, their year-end, the board of directors declared a dividend of $9,500. In the past, they have tried to maintain minimum dividend of $.1 per share on common stock. For the March 31 dividend, referred stockholders would receive a total of ________ and common stockholders a total of ________.

Ardent Inc had 1,000 shares of $100 par, 6% preferred stock outstanding, as well as 100,000 shares of $.01 par common stock On March 31, 1996, their year-end, the board of directors declared a dividend of $9,500. In the past, they have tried to maintain minimum dividend of $.1 per share on common stock. For the March 31 dividend, referred stockholders would receive a total of ________ and common stockholders a total of ________.

Naim 22:11

Ardent Inc had 1,000 shares of $100 par, 6% preferred stock outstanding, as well as 100,000 shares of $.01 par common stock On March 31, 1996, their year-end, the board of directors declared a dividend of $9,500. In the past, they have tried to maintain minimum dividend of $.1 per share on common stock. For the March 31 dividend, referred stockholders would receive a total of ________ and common stockholders a total of ________.



a. $6,000; $10,000
b. $0; $9,500
c. $4,750; $4,750
d. $0; $10,000
e. $6,000; $3,500


Answer: e. $6,000; $3,500
- 1,000 shares x $100 par value / 6% = $6,000 ;
- $9,500 dividend declared - $6,000 paid to preferred stockholders = $3,500


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