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Music Co. outstanding stock includes of: +85,000 preferred stocks with a $2.5 PAR value per share (5% dividends). 100,000 common stocks with a 51 PAR
Music Co. outstanding stock includes of: +85,000 preferred stocks with a $2.5 PAR value per share (5% dividends). 100,000 common stocks with a 51 PAR value. During its first three years of corporation, the corporation declared and paid the following cash dividends: Cash Cumulative Not-Cumulative Years dividends Preferred Dividend Common Dividend Preferred Dividend Common Dividend 2019 10,000 2020 11,000 2021 12,000 Required: Determined the amounts of dividends should be paid each year to each of the two classes of stocks assuming: 1) Preferred stocks are cumulative, 2) Preferred stocks are not-cumulative
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