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Halverstein Company's outstanding stock consists of 7,350 shares of cumulative 5% preferred stock with a $10 par value and 3,150 shares of common stock with
Halverstein Company's outstanding stock consists of 7,350 shares of cumulative 5% preferred stock with a $10 par value and 3,150 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.
Dividends Declared & Paid | ||
Year 1 | $ | 0 |
Year 2 | $ | 6,300 |
Year 3 | $ | 30,000 |
The amount of dividends paid to preferred and common shareholders in Year 2 is:
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$4,410 preferred; $1,890 common.
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$3,675 preferred; $2,625 common.
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$6,300 preferred; $0 common.
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$0 preferred; $6,300common.
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$3,150 preferred; $3,150 common.
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