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12 The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2018 125 points Common stock, par $12

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12 The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2018 125 points Common stock, par $12 per share, 41,000 shares outstanding. Preferred stock, 8 percent, par $12 per share, 6,110 shares outstanding. Retained earnings, $222,800. Skod look On January 1, 2019, the board of directors was considering the distribution of a $62,200 cash dividend. No dividends were paid during 2017 and 2018 Required: 1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: a. The preferred stock is noncumulative. b. The preferred stock is cumulative. 2. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred 3. What factors would cause a more favorable dividend for the common stockholders? Hint Print stock? References Complete this question by entering your answers in the tabs below. Req 1A Req 18 Reg 2 Reg 3 Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders assuming the preferred stock is noncumulative. (Round "Per Share to 2 decimal places and rest to the nearest dollar amount.) Total Per Share aces Paid to the Preferred Stockholders Paid to the Common Stockholders Rog 10 > eBook Complete this question by entering your answers in the tabs below. Hint Reg 1A Reg 1B Reg 2 Reg 3 Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders assuming the preferred stock is cumulative. (Do not round Intermediate instructions. Round "Per Share to 2 decimal places and rest to the nearest dollar amount.) Print o References Total Per Share Paid to the Preferred Stockholders Paid to the Common Stockholders 3. What factors would cause a more favorable dividend for the common stockholders? eBook Complete this question by entering your answers in the tabs below. Hint Reg 1A Print stock? References Reg 10 Reg 2 Req3 Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred The dividends in arrears on the preferred stock had to be fuilled before dividends could be paid for the current The dividend rate for preferred stockholders was increased 3. Vital OLOIS would cause de la Die dividend for the common stockholders? eBook Complete this question by entering your answers in the tabs below. Hind Reg 1A Reg 18 Reg 2 Reg 3 Prime What factors would cause a more favorable dividend for the common stockholders? (Select all that apply.) References DDDDDD The preferred dividends were not in arrears. The preferred dividends were not cumulative The total dividend distribution was increased. The preferred dividends were in arrear. The preferred dividends were cumulative. The total dividend distribution was decreased

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