Question
The outstanding capital stock of Pearl Corporation consists of 1,900 shares of $100 par value, 9% preferred, and 5,400 shares of $50 par value common.
The outstanding capital stock of Pearl Corporation consists of 1,900 shares of $100 par value, 9% preferred, and 5,400 shares of $50 par value common. Assuming that the company has retained earnings of $84,500, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions.
These are the answers I have so far, I don't know if they are correct. And I need help on part 3 please. Thank you in advance!
(a) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.) Preferred Common 17100 67400 (b) The preferred stock is cumulative and nonparticipating. (Round answers to O decimal places, e.g. $38,487.) Preferred Common 51300 $ 33200 1.4278 Rou danswers t de al ia e e S 8 . Round the rate of participation to 4 decima pla es e. c The preferred stock is cumulative and participating Preferred CommonStep by Step Solution
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