Cash Dividends Kerry Company has 1,000 shares of $100 par value, 9 preferred stock and 10,000 shares of $10 par value common stock outstanding The preferred stock is cumulative and nonparticipating Dividends were paid in 2006 Since 2006, Kerry has declared and paid dividends as follows 2007 $ 0 200...

1 Preferred Dividends per Year 1000 100 9 9000 Year Preferred Di ...

Cash Dividends Kerry Company has 1,000 shares of $100 par value, 9% preferred stock and 10,000 shares

Question:

Cash Dividends Kerry Company has 1,000 shares of $100 9% preferred stock and 10,000 shares of $10 outstanding. The preferred stock is cumulative and nonparticipating. Dividends were paid in 2006. Since 2006, Kerry has declared and paid dividends as follows:
2007 ....$ 0
2008 ...10,000
2009 ...20,000
2010 ...25,000

Required
1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2008 to 2010.
2. If the preferred stock had been noncumulative, how much would have been allocated to the preferred and common stockholders each year?

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,...