Question

Nguyen Company has the following stock outstanding:
Common Stock Preferred Stock
60,000 shares ...... 5,000 shares
$1 par value ....... $60 par, $3 dividend
The amount available for dividends this year is $57,000. Prepare the dividend allocation between the preferred and common shares in total and per share.
Situation 2 Bell Company has the following stock outstanding:
Common Stock Preferred Stock
60,000 shares ....... Cumulative: 2,000 shares
$1 par value ....... $50 par, $2 dividend
Noncumulative: 3,000 shares
$50 par, $2 dividend
No dividends were declared in year 1 of operation. In year 2, there is $38,000 avail- able for dividends. Prepare the dividend allocation between the preferred and common shares in total and per share.



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  • CreatedJune 07, 2014
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