Kirkson Corporation has 25,000 shares outstanding of $10 par value, 8 preferred stock, and 50,000 shares outstanding of $10 par value common stock In its first five years of operation, the company paid the following dividends 2011, $0 2012, $20,000 2013, $60,000 2014, $0 2015, $98,300 Calculate the...

2011 2012 2013 2014 2015 Total Dividends 0 2000 ...

Kirkson Corporation has 25,000 shares outstanding of $10 par value, 8% preferred stock, and 50,000 shares outstanding

Question:

Kirkson has 25,000 shares outstanding of $10 8% preferred stock, and 50,000 shares outstanding of $10 common stock. In its first five years of operation, the company paid the following dividends: 2011, $0; 2012, $20,000; 2013, $60,000; 2014, $0; 2015, $98,300. Calculate the dividends paid to preferred and common stockholders under the following three independent situations:
a. Preferred stock is noncumulative and nonparticipating.
b. Preferred stock is cumulative and nonparticipating.
c. Preferred stock is cumulative and fully participating.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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,...