Do It! Review 11-3a Concord Corporation has 3,700 shares of 9%, $103 par value p

Question

Do It! Review 11-3a

Concord Corporation has 3,700 shares of 9%, $103 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $125,500 cash dividend.

Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios.

1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years.

2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years.

3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars 1) Total Dividend Paid        125,500.00 The dividend paid to preferred stockholders = 3700*103*9%          34,299.00 The dividend paid to common stockholders = 125,500 - 34,299          91,201.00 Paticulars 2) Total Dividend Paid        125,500.00 The dividend paid to preferred stockholders = 3700*103*9%          34,299.00 The dividend paid to common stockholders = 125,500 - 34,299          91,201.00 Paticulars 3) Total Dividend Paid        125,500.00 The dividend paid to preferred stockholders = 3700*103*9% + 3700*103*9%+3700*103*9%        102,897.00 The dividend paid to common stockholders = 125,500 - 102,897          22,603.00

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