Aggarwal Company has had 10,000 shares of 10 , $100 par value preferred stock and 80,000 shares of $5 stated value common stock outstanding for the last three years During that period, dividends paid totaled $0, $200,000, and $220,000 for each year, respectively Required Compute the amount of divid...

a Preferred Common Year 1 0 0 Year 2 Preferred Cumulative from year 1 10000 shares x 100 par value 1 ...

Aggarwal Company has had 10,000 shares of 10%, $100 par-value preferred stock and 80,000 shares of $5

Question:

Aggarwal Company has had 10,000 shares of 10%, $100 par-value preferred stock and 80,000 shares of $5 stated-value outstanding for the last three years. During that period, dividends paid totaled $0, $200,000, and $220,000 for each year, respectively.

Required
Compute the amount of dividends that must have been paid to preferred stockholders and common stockholders in each of the three years, given the following four independent assumptions:
a. Preferred stock is nonparticipating and cumulative.
b. Preferred stock participates up to 12% of its and is cumulative.
c. Preferred stock is fully participating and cumulative.
d. Preferred stock is nonparticipating and noncumulative.

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,...