Problem:
Kuhns Corp. has 170,000 shares of preferred stock outstanding that is cumulative. The dividend is $7.10 per share and has not been paid for 3 years.
Requirement:
Question: If Kuhns earned $1.30 million this year, what could be the maximum payment to the preferred stockholders on a per share basis?
- $7.65 per share
- $6.55 per share
- $9.90 per share
- $9.15 per share
Note: Please answer in proper manner and show all computations