Exercise 15-21

Exercise 15-21 The outstanding capital stock of Larkspur Corporation consists of 2,200 shares of $100 par value, 7% preferred, and 4,900 shares of $50 par value common. Assuming that the company has retained eamings of $88,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive urdler each of the following conditionis. (a) The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. $38,487.) Preferred Common (b) The preferred stock is cumulative and noparticipating. (Round answers to 0 decimal places, e.g. $38,487.) Preferred Common c) The preferred stock s cumulative and participating. Round the rate of participation to 4 deci nalplaces, e. g 1.4278%. Round answers to O decinaalplaces, e Saa 48 Preferred Common