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how would i aproach this i would sincerely appreciate any help A company was organized in January 2016 and has 2,000 shares of $100 par
how would i aproach this i would sincerely appreciate any help
A company was organized in January 2016 and has 2,000 shares of $100 par value, 10% preferred stock outstanding and 30,000 shares of $10 par value common stock outstanding. It has declared and paid cash dividends at the end of each year as shown below. Calculate the total dividends distributed to each class of stockholder under each of the assumptions given. Remember: Preferred stockholders receive all dividends they are entitled to each year before common stockholder receive a dividend. 2,000 shares $100 par value * 10% = $20,000 total preferred dividend Assuming Preferred Stock Assuming Preferred Stock is NON Cumulative is Cumulative Cash Dividends Preferred Common Preferred Common Year Declared and Paid Dividend Dividend Dividend Dividend 2016 $15,000 2017 36,000 2018 60,000 NON-Cumulative 2016 2017 2018 Cumulative 2016 2017 2018 Step by Step Solution
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