Brief Exercise 15-15

Marigold Corporation has outstanding9,600shares of $100par value,6% preferred stock and57,400shares of $10par value common stock. The preferred stock was issued in January 2017, and no dividends were declared in 2017 or 2018. In 2019, Marigold declares a cash dividend of $306,000.

(a)Assume that the preferred are noncumulative.

How much dividend will the preferred stockholders receive?

Preferred stockholders would receive?$

How much dividend will the common stockholders receive?

Common stockholders would receive?$

(b)Assume that the preferred are cumulative.

How much dividend will the preferred stockholders receive?

Preferred stockholders would receive ?$

How much dividend will the common stockholders receive?

Common stockholders would receive?