Question
Stockholders equity of Ernst Company consists of 78,000 shares of $5 par value, 10% cumulative preferred stock and 270,000 shares of $1 par value common
Stockholders equity of Ernst Company consists of 78,000 shares of $5 par value, 10% cumulative preferred stock and 270,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the companys inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $115,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. I need the par value for preffered share, the dividend rate, the dividend per preferred share, the number of preferred shares, preferred dividend for two years, total cash dividend, to preferred share holders, and to common share holders.
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