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Problem 5 (8 points) Wellstone Corporation has the following capital stock outstanding: $10 par value common stock, outstanding 150,000 shares. 8% preferred stock, par $800,
Problem 5 (8 points)
Wellstone Corporation has the following capital stock outstanding:
$10 par value common stock, outstanding 150,000 shares.
8% preferred stock, par $800, 2,000 shares, with 2 years in arrears.
Cash dividends of $400,000 were declared and paid near the end of the current year.
Requirements:
Assume that the preferred stock is cumulative.Calculate:
Dividends received by the preferred stockholders
Dividends received by the common stockholders
Show computations here:
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