In each of the following independent cases, it is assumed that the corporation h
ID: 2553973 • Letter: I
Question
In each of the following independent cases, it is assumed that the corporation has $750,000 of 6% preferred stock and $3,000,000 of common stock outstanding, each having a par value of $10. No dividends have been declared for 2016 and 2017.
(a)
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(b)
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(c)
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In each of the following independent cases, it is assumed that the corporation has $750,000 of 6% preferred stock and $3,000,000 of common stock outstanding, each having a par value of $10. No dividends have been declared for 2016 and 2017.
(a)
As of 12/31/18, it is desired to distribute $238,663 in dividends. How much will the preferred stockholders receive if their stock is cumulative and nonparticipating?Preferred stockholders receive $ Attempts: 0 of 2 used
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(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
Explanation / Answer
Answer
A.
For 2009 $400000*6% = $24000
For 2010 $400000*6% = $24000
For 2011 $400000*6% = $24000
Total dividend =$72000
Hence, the preferred stockholders receive $72000 dividend if their stock is cumulative and nonparticipating
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