Question
Sweet Company's outstanding stock consists of 1500 shares of noncumulative 4% preferred stock with a $100 par value and 10,500 shares of common stock with
Sweet Company's outstanding stock consists of 1500 shares of noncumulative 4% preferred stock with a $100 par value and 10,500 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 $ 2500
Year 2 $ 7000
Year 3 $ 34,500
The total amount of dividends paid to preferred and common shareholders over the three-year period is:
$13,000 preferred; $31,000 common.
$12,000 preferred; $32,000 common.
$6000 preferred; $38,000 common.
$18,000 preferred; $26,000 common.
$14,500 preferred; $29,500 common.
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