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Weston Company issued and has outstanding 53,200 shares of $10 par-value common stock and 1,400 shares of $50 par-value 25 percent preferred stock. The board
Weston Company issued and has outstanding 53,200 shares of $10 par-value common stock and 1,400 shares of $50 par-value 25 percent preferred stock. The board of directors votes to distribute $3,500 as dividends in 2019, $4,900 in 2020, and $137,200 in 2021. Compute the total dividend and the dividend for each share paid to preferred stockholders and common stockholders each year under the following assumed situations. Case A: The preferred stock is nonparticipating and noncumulative. Case B: The preferred stock is cumulative and nonparticipating. Analyze: If a stockholder purchased 190 shares of cumulative preferred stock in 2019, what total dividends should be paid to this stockholder in the fiscal year 2021, assuming Case B? Complete this question by entering your answer in the tabs below. Case A Case B Analyze Compute the total dividend and the dividend for each share paid to preferred stockholders and common stockholders each year under the above assumed situations. (Round your pershare answers to 2 decimal places.) Total Year Dividends 2019 $ 3,500 2020 4,900 2021 | 137,200 Preferred Stock Total Per Share $ 3,500 $ 2.50 4,900 3.50 Common Stock Total Per Share $ 0 $ 0.00 0 0.00
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