Available for common stock dividends


Colliers, Inc., has 100,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $2 per share but because of cash flow problems, the company did not pay any dividends last year. The board of directors plans to pay dividends in the amount of $1 million this year.What amount will go to preferred stockholders? How much will be available for common stock dividends?

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Accounting Basics: Available for common stock dividends
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