Preferred dividends   In each case in the following​ table,

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​, 

how many dollars of preferred dividends per share must be paid to preferred stockholders before common stock dividends are​ paid?

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Part 1

The amount of preferred dividends that must be paid in Case A before common dividends are paid is

​$16.00

. 

​(Round to the nearest​ cent.)

Part 2

The amount of preferred dividends that must be paid in Case B before common dividends are paid is

​$enter your response here

. 

​(Round to the nearest​ cent.)

To determine the preferred dividends that must be paid to preferred stockholders before common stock dividends, we need the following information for both **Case A** and **Case B**:

1. **Number of preferred shares**
2. **Dividend rate (%)** or **fixed dividend amount** per share
3. **Par value of preferred shares** (if a percentage dividend rate is provided)

Given that Part 1 already specifies the amount of $16.00 in **Case A**, let's focus on **Case B**.

### General Formula:
If we have a percentage dividend rate and a par value:

\[
\text{Preferred Dividend per Share} = \left(\frac{\text{Dividend Rate}}{100}\right) \times \text{Par Value}
\]

#### Example Scenario (Case B):
If we were given:
- **Preferred dividend rate = 8%**
- **Par value of each preferred share = $25**

Then, the amount of preferred dividends per share would be:

\[
\text{Preferred Dividend per Share} = 0.08 \times 25 = 2.00
\]

Therefore, the **preferred dividends per share** that must be paid in **Case B** would be **$2.00** before any common stock dividends can be distributed.

Please provide the details for **Case B**, such as the dividend rate and par value, if available. This will allow me to calculate the exact amount for you.

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Would you like more details on any specific concept?  
Here are 5 related questions that might interest you:

1. How is the par value of a preferred stock determined?
2. What happens if preferred dividends are not paid in a particular year?
3. What is the difference between cumulative and non-cumulative preferred dividends?
4. How do participating preferred dividends work?
5. Can common shareholders receive dividends if preferred dividends are not paid?

**Tip**: When calculating dividends for preferred stocks, ensure that you know whether they are cumulative or non-cumulative, as this affects unpaid dividends from previous years.

Preferred dividends. In each case in the following table, how many dollars of preferred dividends per share must be paid to preferred stockholders before common stock dividends are paid? The amount of preferred dividends that must be paid in Case A before common dividends are paid is $16.00. (Round to the nearest cent.) The amount of preferred dividends that must be paid in Case B before common dividends are paid is (enter your response here). (Round to the nearest cent.)

Learn how to calculate the preferred dividends per share that must be paid before common stock dividends. This example covers a step-by-step approach to finding the dividends using the formula: Preferred Dividend per Share = (Dividend Rate / 100) × Par Value. Suitable for high school students in Grades 11-12.

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