# Copperhead Trust has the following classes of stock: Preferred Stock-6%, \$12 par value; 8,500 shares authorized, 7,000 shares issued and

## Question:

Copperhead Trust has the following classes of stock:
Preferred Stock-6%, \$12 par value; 8,500 shares authorized, 7,000 shares issued and outstanding
Common Stock-\$0.10 par value; 2,100,000 shares authorized, 1,400,000 shares issued and outstanding
Requirements
1. Copperhead declares cash dividends of \$44,000 for 2018. How much of the dividends goes to preferred stockholders? How much goes to common stockholders?
2. Assume the preferred stock is cumulative and Copperhead passed the preferred dividend in 2016 and 2017. In 2018, the company declares cash dividends of \$46,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?
3. Assume the preferred stock is noncumulative and Copperhead passed the preferred dividend in 2016 and 2017. In 2018, the company declares cash dividends of \$46,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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Related Book For

## Horngrens Financial And Managerial Accounting The Financial Chapters

ISBN: 9780134486840

6th Edition

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

Question Details
Chapter # 13
Section: Short Exercises
Problem: 8
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