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The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2009: Common stock, par $13 per share, 43,000
The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2009:
Common stock, par $13 per share, 43,000 shares outstanding. |
Preferred stock, 10 percent, par $13 per share, 6,700 shares outstanding. |
Retained earnings, $214,000. |
On January 1, 2010, the board of directors was considering the distribution of a $67,000 cash dividend. No dividends were paid during 2008 and 2009. |
Required: |
Determine the total and per share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions (Round your Dividend per share to 2 decimal places.) |
a. | The preferred stock is noncumulative. |
b. | The preferred stock is cumulative. |
a. Noncumulative: |
Preferred | Common | |
Total dividend | $ | $ |
Dividend per share | $ | $ |
|
b. Cumulative: |
Preferred | Common | |
Total dividend | $ | $ |
Dividend per share | $ | $ |
|
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