Assignment
At December 31, 2016, Forgione Company has the following: Common Stock, $10 par, 10,000 shares authorized, 8,000 issued, 7,000 outstanding Preferred Stock, $100 par, 7%, cumulative, 1,000 shares authorized, issued, and outstanding The company did not pay any dividend during 2015 or 2014.
REQUIRED:
1. Compute the amount of dividend to be received by the common and preferred stockholders in 2016 if the company declared a dividend of $50,000.
2. How many shares of treasury stock does Forgione have?
3. What are the dividends per share of common stock as a result of this distribution?
4. What are the dividends per share of Preferred stock as a result of this distribution?