Question
Sweet Company's outstanding stock consists of 1,300 shares of cumulative 5% preferred stock with a $100 par value and 11,300 shares of common stock
Sweet Company's outstanding stock consists of 1,300 shares of cumulative 5% preferred stock with a $100 par value and 11,300 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 3,300 $ 7,300 Year 2 Year 3 $ 38,500 The amount of dividends paid to preferred and common shareholders in year 3 is: Multiple Choice $0 preferred; $38,500 common. $38,500 preferred: $0 common. $6,500 preferred; $32,000 common. $8,900 preferred; $29,600 common. $19,500 preferred; $19,000 common.
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