Hello, I have a question on how to account for cumulative PARTICIPATING stock If

Question

Hello, I have a question on how to account for cumulative PARTICIPATING stock

If you could show how how much dividends is allocated to the preferred and common shareholders that would be great!

Information:

Dividends for each year:
2016: 8 Mil
2017: 20 Mil
2018: 150 Mil

Common Stock: 100 mil
PIC - Excess common: 980 mil
Preferred Stock, 8%: 200 mil
PIC- P.S: 555 mil

I understand how to calculate if it is nonparticipating, but not for participating.

If you can, can you go step by step

Thanks for the help!

Explanation / Answer

Use this link to get answer

https://financeaccountsonlinetutoring-cumulativeparticipatingsharesanalysis.googledrives/

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