Question 3 (of 6) 2.00 points The records of Hollywood Companiy reflecled the fo

Question

Question 3 (of 6) 2.00 points The records of Hollywood Companiy reflecled the following balanices in the stockholders' equity accounts at the end of the current yea Preterred stock1e 43 shares Preferred stock, 10 percent, S10 par value, 9,000 shares outstanding Common stock, $12 par value, 4300 shares outstanding Retained earnings, S226,000 On September 1 of the current year, he board of directors was considering the distribution of an $76,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions a. The preferred stock is noncumulative. b. The preterred stock is cumuilative Required 1. Detemine the total and per share amounts that would be paid to the common stockholders and the preferred stockholders under the two incependent assumptions (Round "per share" to 2 decimal places.) Noncumulative Totel Per share Total Per share References eBook & Resources Worksheet Learning Objectlive. 11-04 Discuss and report dividends. Learning Objective. 11-08 Discuss the impact of slock transaclions on cash ows Learning Objective: 11-0 Describe the characteristics ot preferred slock and report preferred stock transactions Ditticulty: 3 Hard

Explanation / Answer

Determine Total and per share amount that would be paid to common shareholders and preferred shareholders :

Preferred Common Non cumulative Total 9000 67000 Per share 1 1.56 Cumulative Total 27000 49000 Per share 3 1.14

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