Testbank Multiple Choice Question 121

On July 1, 2021, Coronado Industries issued 3900 shares of its $10 par common stock and 7800 shares of its $10 par convertible preferred stock for a lump sum of $218400. At this date Coronado's common stock was selling for $24 per share and the convertible preferred stock for $18 per share. The amount of the proceeds allocated to Coronado's preferred stock should be

$131040.

$109200.

$140400.

$120120.

Testbank Multiple Choice Question 118

Concord Corporation has 157000 shares of $10 par value common stock and 78500 shares of $10 par value, 5%, cumulative, participating preferred stock outstanding. Dividends on the preferred stock are one year in arrears. Assuming that Concord wishes to distribute $270000 as dividends, the common stockholders will receive

$116140.

$153860.

$191500.

$ 78500.