Question
Sweet Company's outstanding stock consists of 1,800 shares of cumulative 5% preferred stock with a $100 par value and 11,800 shares of common stock
Sweet Company's outstanding stock consists of 1,800 shares of cumulative 5% preferred stock with a $100 par value and 11,800 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. Year 1 Year 2 Dividends Declared & Paid $3,800 $ 7,800 Year 3 $ 41,000 The amount of dividends paid to preferred and common shareholders in year 3 is: $15,400 preferred; $25,600 common. $27,000 preferred; $14,000 common. $41,000 preferred; $0 common. $9,000 preferred; $32,000 common.
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