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Dividends for Preferred and Common Stock The Stockholders' Equity category of Greenbaum Company's balance sheet as of December 31, 2017, appeared as follows: Preferred stock,
Dividends for Preferred and Common Stock
The Stockholders' Equity category of Greenbaum Company's balance sheet as of December 31, 2017, appeared as follows:
Preferred stock, $100 par, 6% | |
3,000 shares issued and outstanding | $300,000 |
Common stock, $10 par | |
60,000 shares issued and outstanding | 600,000 |
Additional paid-in capital | 750,000 |
Total contributed capital | $1,650,000 |
Retained earnings | 1,350,000 |
Total stockholders' equity | $3,000,000 |
The notes to the financial statements indicate that dividends were not declared or paid for 2015 or 2016. Greenbaum wants to declare a dividend of $219,000 for 2017.
Required:
Determine the total and the per-share amounts that should be declared to the preferred and common stockholders under the following assumptions:
- The preferred stock is noncumulative, nonparticipating.
- The preferred stock is cumulative, nonparticipating.
Round per share amounts to the nearest cent.
Total Preferred Dividends Per Share Amount Total Common Dividends Per Share Amount $ $Step by Step Solution
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