Reference no: EM133062023

Question - BRC Corp. has an issue of cumulative preferred shares outstanding. Due to the loss of a major client and falling revenue recently, the company's regular quarterly dividend of $0.25 per share has not been paid for the first three quarters of 2020. However, if BRC decides to pay a dividend in the 4th quarter of this year, before the common shareholders can receive a dividend, how much of a dividend payment would each preferred shareholder have to receive?

a. $1.00 per share

b. $0.75 per share

c. $0.25 per share

d. The preferred shareholders would receive nothing because common shareholders are in first position to receive dividends.