Exercise 15-21

The outstanding capital stock of Cullumber Corporation consists of 2,100 shares of $100 par value, 8% preferred, and 4,800 shares of $50 par value common. Assuming that the company has retained earnings of $88,500, 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 under each of the following conditions. (a) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)

Preferred Common (b) The preferred stock is cumulative and nonparticipating. (Round answers to o decimal places, e.g. $38,487.) Preferred Common (c) The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g Preferred Common incon