M. Bramble Corporation has 14,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2020. No dividends were declared in 2018 or 2019. If M. Bramble wants to pay $360,000 of dividends in 2020, what amount of dividends will common stockholders receive

Dividend - Common stock = $24000

Explanation:

The cumulative preferred stock refers to the kind of preferred stock that accrues the dividends in case the dividend on these stocks is not paid in a certain year. Such dividend is to be paid first whenever the business declares dividends in the future.

The total dividend per year on the cumulative preferred stock for M. Bramble Corporation is,

Dividend - Preferred stock = 14000 * 100 * 0.08 = $112000

The dividends in arrears at the start of 2020 = 112000 * 2 = $224000

The total dividend payable on preferred stock at the end of 2020 = 224000 + 112000 = $336000

As the dividends on preferred stock is payable before dividends on common stock, the dividends on common stocks will be,

Dividend - Common stock = 360000 - 336000 = $24000

answer; niosh, the national institute for occupational safety and health;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.