CALCULATOR PRINTER TRSON ·BACK Do It! Review 11-3a culver corporation has 3,800

Question

CALCULATOR PRINTER TRSON ·BACK Do It! Review 11-3a culver corporation has 3,800 shares of 7%, $101 par value prefe ed stock outstanding at December 31, 2017. At December 31 2017, the m any dec ared a $126,000 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. The dividend paid to preferred stockholders The dividend paid to common stockholders 2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years The dividend paid to preferred stockholders The dividend paid to common stockholders 3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholderss The dividend paid to common stockholders s Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Annual preferred dividends=3800*101*7%= 26866 1 Dividend paid to preferred stockholders 26866 Dividend paid to common stockholders 99134 =126000-26866 2 Dividend paid to preferred stockholders 26866 Dividend paid to common stockholders 99134 3 Dividend paid to preferred stockholders 80598 =26866*3 Dividend paid to common stockholders 45402 =126000-80598

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