Question
The stockholders' equity section of Lemay Corporation shows the following on December 31, 2018: Preferred stock5%, $100 par, 4,500 shares outstanding $450,000 Common stock$10 par,
The stockholders' equity section of Lemay Corporation shows the following on December 31, 2018: Preferred stock5%, $100 par, 4,500 shares outstanding $450,000 Common stock$10 par, 58,000 shares outstanding 580,000 Paid-in capital in excess of par 180,000 Retained earnings 94,600 Total stockholders' equity $1,304,600 Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/18 and that preferred dividends were last paid on 12/31/16, show how much the preferred and common stockholders should receive if the preferred stock is cumulative and fully participating?
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