Instructions

Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/13 and that preferred dividends were last paid on 12/31/11, show how much the preferred and common stockholders should receive if the preferred stock is cumulative and fully participating.

Ex. 2Weighted average shares outstanding.

On January 1, 2013, Warren Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On October 1, the corporation purchased on the market 400,000 of its own outstanding shares and retired them.