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Halverstein Company's outstanding stock consists of 10,500 shares of cumulative 5% preferred stock with a $10 par value and 4,500 shares of common stock with
Halverstein Company's outstanding stock consists of 10,500 shares of cumulative 5% preferred stock with a $10 par value and 4,500 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.
Dividend Declared | ||
Year 1 | $ | 0 |
Year 2 | $ | 9,000 |
Year 3 | $ | 39,000 |
The amount of dividends paid to preferred and common shareholders in Year 2 is:
Multiple Choice
$5,250 preferred; $3,750 common.
$4,500 preferred; $4,500 common.
$0 preferred; $9,000common.
$9,000 preferred; $0 common.
$6,300 preferred; $2,700 common.
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