a-company-declares-a-dividend-of-180000-preferred-stockholders-are-entitled-to-1

Question

A company declares a dividend of $$180,000. Preferred stockholders are entitled to 120$$,000. If the company only pays $100,000, what happens?

Accepted Answer

Preferred stockholders receive $$100,000, and common stockholders receive 0.$$

Answer

Preferred stockholders receive $$120,000, and common stockholders receive 0.$$

Answer

Preferred stockholders receive $$100,000, and common stockholders receive 20$$,000.

Answer

Preferred stockholders receive $$80,000, and common stockholders receive 20$$,000.

A company declares a dividend of \$180,000. Preferred stockholders are entitled to \$120,000. If the company only pays \$100,000, what happens?