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In each of the following independent cases, it is assumed that the corporation has $750,000 of 6% preferred stock and $3,000,000 of common stock...

In each of the following independent cases, it is assumed that the corporation has $750,000 of 6% preferred stock and $3,000,000 of common stock outstanding, each having a par value of $10. No dividends have been declared for 2016 and 2017.


(a)

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As of 12/31/18, it is desired to distribute $238,663 in dividends. How much will the preferred stockholders receive if their stock is cumulative and nonparticipating?


Preferred stockholders receive$


Attempts: 2 of 2 used 


(b)

As of 12/31/18, it is desired to distribute $750,000 in dividends. How much will the preferred stockholders receive if their stock is cumulative and participating up to 12% in total?


Preferred stockholders receive$

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