Part 1 is correct I just cannot figure out part 2.
11 E11-10 (Algo) Computing Dividends on Preferred Stock and Analyzing Differences [LO 11-3, LO 11-4] The records of Alvarez Incorporated reflected the following balances in the stockholders' equity accounts at December 31, 2021: 5.55 points Common stock, par $12 per share, 43,000 shares outstanding. Preferred stock, 8 percent, par $16.00 per share, 6,510 shares outstanding. Retained earnings, $226,000. 8 03:17:45 On January 1, 2022, the board of directors was considering the distribution of a $62,600 cash dividend. No dividends were paid during 2020 and 2021. eBook Required: 1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: Hint a. The preferred stock is noncumulative. b. The preferred stock is cumulative. Print 2. Why might the dividends per share of common stock be different for noncumulative preferred stock and cumulative preferred stock? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Determine the total and per-share amounts that would be paid to the common stockholders and the preferred stockholders assuming the preferred stock is noncumulative. (Round "Per Share" to 2 decimal places and rest to the nearest dollar amount.) Paid to the Preferred Stockholders Paid to the Common Stockholders $ $ Total Per Share 8,333 $ 1.28 54,267 $ 1.26 11 E11-10 (Algo) Computing Dividends on Preferred Stock and Analyzing Differences [LO 11-3, LO 11-4] The records of Alvarez Incorporated reflected the following balances in the stockholders' equity accounts at December 31, 2021: 5.55 points Common stock, par $12 per share, 43,000 shares outstanding. Preferred stock, 8 percent, par $16.00 per share, 6,510 shares outstanding. Retained earnings, $226,000. 03:17:41 On January 1, 2022, the board of directors was considering the distribution of a $62,600 cash dividend. No dividends were paid during 2020 and 2021. eBook Required: Co Hint 1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: Print a. The preferred stock is noncumulative. b. The preferred stock is cumulative. 2. Why might the dividends per share of common stock be different for noncumulative preferred stock and cumulative preferred stock? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders assuming the preferred stock is cumulative. (Do not round intermediate instructions. Round "Per Share" to 2 decimal places and rest to the nearest dollar amount.) Paid to the Preferred Stockholders Paid to the Common Stockholders $ $ Total Per Share 6,510 $ 3.00 43.851 $ 1.02
