Afirm has an outstanding issue of 1,000 shares of preferred stock with a $100 par value and an 8 percent annual dividend. the firm also has 5,000 shares of common stock outstanding. if the stock is cumulative and the board of directors has passed the preferred dividend for the prior two years, how much must the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year?

“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”

Explanation:

The Paid-up value of Preferred Shares = $100,000 [1,000 Shares x $100]

The Amount of Preferred Dividend per year = $8,000 [$100,000 x 8%]

The amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year

= Cumulative Preferred Dividends payable for the 2 years + Current Year Dividend

= [$8,000 x 2 Years] + $8,000

= $16,000 + 8,000

= $24,000

“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!

answer; marketing resource management;