Derek Corporation was organized on January 1, 2007 During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock At December 31, the company declared the following cash dividends 2007 $10,000 2008 $30,000 2009 $70,000 (a)...

a Preferred Common Total 2007 10000 ...

Derek Corporation was organized on January 1, 2007. During its first year, the corporation issued 40,000 shares

Question:

Derek was organized on January 1, 2007. During its first year, the issued 40,000 shares of $5 preferred stock and 400,000 shares of $1 common stock. At December 31, the company declared the following cash dividends:
2007....................................$10,000
2008....................................$30,000
2009....................................$70,000
(a) Show the allocation of dividends to each class of stock, assuming the preferred stock is 6% and not cumulative.
(b) Show the allocation of dividends to each class of stock, assuming the preferred stock is 8% and cumulative
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...