Nu-Tek has preferred stock outstanding that pays a cumulative $1.50 dividend per quarter. This company has not paid any of its dividends for the past two quarters. How much must be paid as a dividend for each share of preferred stock if the company plans to pay a dividend to its common shareholders this upcoming quarter?

(A) $0

(B) $4.50

(C) $1.50

(D) $6.00

(E) $3.00

Question

Business

Lea

25 May, 08:04

Nu-Tek has preferred stock outstanding that pays a cumulative $1.50 dividend per quarter. This company has not paid any of its dividends for the past two quarters. How much must be paid as a dividend for each share of preferred stock if the company plans to pay a dividend to its common shareholders this upcoming quarter?

(A) $0

(B) $4.50

(C) $1.50

(D) $6.00

(E) $3.00

+3

Answers (1)

Know the Answer?

Dallas Webb · Answer 1

(a) $0

Explanation:

The company has to types of Stocks the preferred and the common, it's a reason why they don't have to pay any money to the common shareholders, due that the preferred stock it's the stock that has an outstanding performance and pay every quarter $1,50, only the preferred shareholder could receive any dividend of this type of stock. It's the reason why the answer it's $0