Time remaining: 4:12:38 value 2.00 points The records of Hollywood Company refle

Question

Time remaining: 4:12:38 value 2.00 points The records of Hollywood Company reflected the following balances in the stockholders equity accounts at the end of the current year: Common stock, $11 par value, 36,000 shares outstanding Preferred stock, 9 percent, $9 par value, 8,000 shares outstanding Retained earnings, $227,000 On September 1 of the current year, the board of directors was considering the distribution of an $66,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations): a. The preferred stock is noncumulative. b. The preferred stock is cumulative Required: 1. Determine the total and per share amounts that would be paid to the common stockholders and the preferred stockholders under the two independent assumptions (Round "per share" to 2 decimal places.)

Explanation / Answer

Determine Total and per share amount that would be paid to common shareholders and preferred shareholders :

Preferred Common Non cumulative Total 6480 59520 Per share 0.81 1.65 Cumulative Total 19440 46560 Per share 2.43 1.29

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