Question
Sweet Companys outstanding stock consists of 1,700 shares of cumulative 4% preferred stock with a $100 par value and 11,700 shares of common stock with
Sweet Companys outstanding stock consists of 1,700 shares of cumulative 4% preferred stock with a $100 par value and 11,700 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 $ 3,700 Year 2 $ 7,700 Year 3 $ 40,500 The amount of dividends paid to preferred and common shareholders in year 3 is: Multiple Choice $6,800 preferred; $33,700 common. $40,500 preferred; $0 common. $20,400 preferred; $20,100 common. $9,000 preferred; $31,500 common. $0 preferred; $40,500 common.
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