Rensing, Inc., has $840,000 of 5% preferred stock and $1,300,000 of common stock outstanding, each having a

Question:

Rensing, Inc., has $840,000 of 5% preferred stock and $1,300,000 of outstanding, each having a of $10 per share. No dividends have been paid or declared during 2013 and 2014. As of December 31, 2015, it is desired to distribute $362,200 in dividends. How much will the preferred and common stockholders receive under each of the following assumptions?
(a) The preferred is noncumulative and nonparticipating.
(b) The preferred is cumulative and nonparticipating.
(c) The preferred is cumulative and fully participating.
(d) The preferred is cumulative and participating to 9% total.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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,...