Slater Lamp Manufacturing has an outstanding issue of preferred stock with an $80 par value and an 11% annual dividend.
a. What is the annual dividend? If it is paid quarterly, how much will be paid each quarter?
b. If the preferred stock is noncumulative and the board of directors has passed (not paid) the preferred dividend for the last 3 years, how much must be paid to preferred stockholders (per share) before dividends are paid to common stockholders?