Question
Andrews company has $80,000 available to pay dividends. it has 200 shares of 10% $100 par preferred stock and 30,00 shares of $10 common stock
Andrews company has $80,000 available to pay dividends. it has 200 shares of 10% $100 par preferred stock and 30,00 shares of $10 common stock outstanding. the preferred stock isselling at $125 per share and thecommon is selling at $20 per share.
prepare journal entries. for the amount of dividends in each class of shareholder given the following independent assumptions:
A. preferred stock is nonparticipating and noncumultive
B. preferred stock is nonpart. and cumulative. preferred dividends are 2 years in arrears at beg. of the year
c. preferred stock is fully part. and cumulative preferred dividends are 1 year in arrearsat beg. of year
2. for 1a compute the dividend yield othe preferred and common stock.
in excel foramt
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