Holly Brown Architectural Company has 5,000 shares of 8%, $70 par, cumulative preferred stock outstanding and 7,500

Question:

Holly Brown Architectural Company has 5,000 shares of 8%, $70 par, cumulative preferred stock outstanding and 7,500 shares of $2.50 par value common stock outstanding. The company began operations on July 1, 2009. The cash dividends declared and paid during each of the first three years of Holly Brownâ€™s operations are shown. Calculate the amounts that went to the preferred and the common shareholders (SHs) eachyear.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...