Question 3 Part A,B,C

Exercise 8-14 (Static) Preferred stock-calculate dividend amounts LO 8-2 Calculate the cash dividends required to be paid for each of the following preferred stock issues: Required: a. The semiannual dividend on 7% cumulative preferred, $60 par value, 40,000 shares authorized, issued, and outstanding. b. The annual dividend on $5.20 cumulative preferred, 800,000 shares authorized, 240,000 shares issued, 171,600 shares outstanding. Last year's dividend has not been paid, c. The quarterly dividend on 4.8% cumulative preferred, $100 stated value, $103 liquidating value, 600,000 shares authorized, 445,000 shares issued and outstanding. No dividends are in arrears. Exercise 8-24 (Static) Stock splits versus stock dividends LO 8-4 Assume that you own 900 shares of common stock of a company, that you have been recelving cash dividends of $3.15 per share per year, and that the company has a 3 -for-2 stock split. Required: a. How many shares of common stock will you own after the stock split? b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? Note: Round your answer to 2 decimal places. c. What stock dividend percentage could have accomplished the same end result as the 3 -for-2 stock split? Exercise 8-8 (Static) Review exercise-calculate net income LO 8-7 At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $657,000. During the year, liablities decreased by $108,000, assets increased by $231,000, and paid-in capital increased by $30,000 to $570,000. Dividends declared and paid during the year were $186,000. At the end of the year, stockholders' equity totaled $1,137,000. Required: Calculate net income or loss for the year. Note: Amounts to be deducted should be indicated with a minus sign