Do It! Review 11-3a Pina Colada Corp. has 3,100 shares of 9%, $102 par value pre

Question

Do It! Review 11-3a Pina Colada Corp. has 3,100 shares of 9%, $102 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $122,500 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios. 1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years. The dividend paid to preferred stockholderss The dividend paid to common stockholders s 2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholderss The dividend paid to common stockholders 3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders s The dividend paid to common stockholders s Click if you would like to Show Work for this question: LINK TO TEXT

Explanation / Answer

Preferred stock dividends = 3,100 shares * 102 per share * 9% = 28,458

1.

2.

3.

The dividend paid to preferred stockholders 28,458 The dividend paid to common stockholders 94,042 (122,500-28,458)

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