Magic Conglomerates had the following preferred stock outstanding at the end of a recent year: $25 par,

Question:

Magic Conglomerates had the following preferred stock outstanding at the end of a recent year:
$25 par, 8 percent ................... 10,000 shares
$30 par, 8 percent, cumulative .............. 8,000 shares
$50 par, 9 percent, cumulative, convertible ......... 5,000 shares
$75 par, 10 percent, nonparticipating ............ 15,000 shares

Required:
1. Determine the amount of annual dividends on each issue of preferred stock and the total annual on all four issues.
2. Calculate what the amount of dividends in arrears would be if the dividends were omitted for one year. 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...