a-company-declares-a-total-dividend-of-30000-but-preferred-shareholders-are-due-

Question

A company declares a total dividend of $30,000, but preferred shareholders are due $40,000. What are the implications for both preferred and common shareholders?

Accepted Answer

Preferred shareholders receive the entire $30,000, and common shareholders receive nothing.

Answer

Preferred shareholders receive $30,000, and common shareholders receive $10,000.

Answer

Preferred shareholders receive $40,000, and common shareholders receive nothing.

Answer

Both preferred and common shareholders receive a proportionate share of the $30,000.

A company declares a total dividend of \$30,000, but preferred shareholders are due \$40,000. What are the implications for both preferred and common shareholders?