The information shown below is available from the accounting records of two different corporations.

Instructions:

1. Calculate the value of preferred stock. ;

2. Calculate the amount of dividends to be paid each year to preferred and common shareholders for each company.

Transcribed Image Text:

Preferred Stock: Description Dividend Rate Shares Issued Common Stock: Description Shares Issued Edison Corporations $100.00 par-value 10% 2,000 $2.00 stated-value 300,000 Carmac $50.00 par-value 8% 10,000 $1.00 stated-value 200,000 Annual Dividend: Year 1 Year 2 Year 3 $25,000.00 $50,000.00 $30,000.00 $60,000.00 $35,000.00 $75,000.00