Best-Cost Corporation issues 5 million shares of common stock and 100,000 shares of 6 percent cumulative preferred stock at $100 par. The corporation has not paid any dividend during the previous 3 years. The board of directors decides to pay $5 million in dividends for the current year.
a. How much in dividends is paif for each share of preferred stock?
b. What is the total amount of dividends paid to preferred stockholders?
c. How much is the dividend payment for each share of common stock?
d. What is the total amount of dividends paid to common stockholders?