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Red Hot Company issued and has outstanding 118,000 shares of $10 par-value common stock and 6,800 shares of $50 par-value 6 percent preferred stock. The
Red Hot Company issued and has outstanding 118,000 shares of $10 par-value common stock and 6,800 shares of $50 par-value 6 percent preferred stock. The board of directors votes to distribute $11,800 as dividends in 201,$29,000 in 202, and $101,800 in 203. Required: Compute the total dividend and the dividend for each share paid to preferred stockholders and common stockholders each year under the following assumed situations: Case A: The preferred stock is nonparticipating and noncumulative. Case B : The preferred stock is cumulative and nonparticipating. Analyze: stockholder in the fiscal year 203, assuming Case B? Complete this question by entering your answer in the tabs below. Compute the total dividend and the dividend for each share paid to preferred stockholders and common stockholders each year under the above assumed situation. (Round your per share answers to 2 decimal places.)
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