Answer:
$135000
Explanation:
Given: Outstanding cumulative preferred stock of 10000 shares of 8% at $100
Dividend paid= $375000.
Now, calculating preferred stock.
Preferred stock= [tex](10000 shares\times $100\times 8\%)= \$ 80000[/tex]
∴ Preferred stock= $80000
Cumulative dividend paid to shareholder= [tex](80000\times 2 + 80000) = \$ 240000.[/tex]
∴ Cumulative dividend paid to shareholder= $240000
Next, computing the amount of dividends will common stockholder receive.
Total dividend paid= $375000.
Dividend received by common stockholder= [tex](\textrm {Total dividend paid - cumulative dividend paid})[/tex]
⇒ Dividend received by common stockholder= [tex](375000-240000)= \$ 135000[/tex]
∴ $135000 dividend will be received by common stockholder.
