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A company had the following stock outstanding: 2,500 shares of 10%, $100 par Non - Cumulative Preferred Stock; and $50,000 shares of $10 par Common...

A company had the following stock outstanding: 2,500 shares of 10%, $100 par Non - Cumulative Preferred Stock; and $50,000 shares of $10 par Common Stock.

The company distributed dividends as follows: Year 1 -- 10,000; Year 2 -- $25000; Year 3 -- $60,000.

How much would the P/S and C/S receive in each of the years?

YearTotal DividendsPreferred Stock DividendCommon Stock Dividend1$10,000??2$25,000??3$60,000??

Top Answer

Dividends on preferred shares are paid before dividends on common shares. If the... View the full answer

5 comments
  • is this for Non Cumulative?
    • ivywyman
    • May 03, 2018 at 12:49pm
  • no for Cumulative
    • irfanrai530
    • May 03, 2018 at 12:52pm
  • the question above was for Non Cumulative
    • ivywyman
    • May 03, 2018 at 12:53pm
  • yeah i did a mistake, i was working for comulative
    • irfanrai530
    • May 03, 2018 at 12:57pm
  • Can you redo it in Non Cumulative please
    • ivywyman
    • May 03, 2018 at 12:58pm

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