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Need help with Part C. A= Preferred 18000, Common 64500 B= Preferred 54000, Common 28500 The outstanding capital stock of Ayayai Corporation consists of 2,000
Need help with Part C.
A= Preferred 18000, Common 64500
B= Preferred 54000, Common 28500
The outstanding capital stock of Ayayai Corporation consists of 2,000 shares of $100 par value, 9% preferred, and 5, 200 shares of $50 par value common. Assuming that the company has retained earnings of $82, 500, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. (a) The preferred stock is noncumulative and nonparticipating. (b) The preferred stock is cumulative and nonparticipating. (c) The preferred stock is cumulative and participatingStep by Step Solution
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