Question
Weygandt Co. has outstanding 2,500 shares of $100 par, 6% preferred stock and 15,000 shares of $10 par value common. The following incomplete schedule shows
Weygandt Co. has outstanding 2,500 shares of $100 par, 6% preferred stock and 15,000 shares of $10 par value common.
The following incomplete schedule shows the amount of dividends paid out over the last 4 years and their allocations between PS and CS given two different sets of assumptions, (a) and (b).
| Fill in the 10 blank boxes with the appropriate amounts. |
| Preferred: Noncumulative & | |
| Nonparticipating |
| Year | Paid Out | Total Paid | Total Paid | Preferred | Common | ||||||
| to PS | to CS | Annual Dividend* | In Arrears | Partic'n after 6% | Total Paid to PS | 6% of Par | Partic'n after 6% | Total Paid to CS | |||
| 2018 | $13,000 | $13,000 | $0 | $13,000 | $2,000 | $0 | $13,000 | $0 | $0 | $0 | |
| 2019 | $26,000 | $15,000 | $11,000 | $15,000 | $0 | $0 | $17,000 | $9,000 | $0 | $9,000 | |
| 2020 | $57,000 | $15,000 | $42,000 | $15,000 | $20,625 | $9,000 | $12,375 | ||||
| 2021 | $76,000 | $15,000 | $15,000 | ||||||||
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Fundamentals of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
11th edition
77861701, 978-0077861704
