Question
A corporation has 10,000 shares of 10% noncumulative preferred stock and 5,000 shares of common stock outstanding. Par value for each is $10. This year
A corporation has 10,000 shares of 10% noncumulative preferred stock and 5,000 shares of common stock outstanding. Par value for each is $10. This year a $200,000 dividend is paid. There are two years of dividends in arrears. How much of this $200,000 goes to the holders of common stock and to the holders of preferred stock?
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