A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as...

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A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as follows. Notice that the company has two classes of preferred stock with different features, in addition to common stock. Stockholders' equity: Preferred stock, 9% cumulative, $50 par, 35,000 shares authorized, issued, and outstanding Preferred stock, 12% noncumulative, $100 par, 6,400 shares authorized, issued, and outstanding Common stock, $5 par, 400,000 shares authorized, issued, and outstanding $1,750,000 640,000 2,000,000 $4,390,000 Total paid-in capital Assume that all the stock was issued on January 1 and that no dividends were paid during the first two years of operation. During the third year, Walland Corporation paid total cash dividends of $736,000. a. Compute the amount of cash dividends paid during the third year to each of the three classes of stock. b. Compute the dividends paid per share during the third year for each of the three classes of stock. (Round your answers to 2 decimal places.) c. What was the average issue price of each type of preferred stock? A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as follows. Notice that the company has two classes of preferred stock with different features, in addition to common stock. Stockholders' equity: Preferred stock, 9% cumulative, $50 par, 35,000 shares authorized, issued, and outstanding Preferred stock, 12% noncumulative, $100 par, 6,400 shares authorized, issued, and outstanding Common stock, $5 par, 400,000 shares authorized, issued, and outstanding $1,750,000 640,000 2,000,000 $4,390,000 Total paid-in capital Assume that all the stock was issued on January 1 and that no dividends were paid during the first two years of operation. During the third year, Walland Corporation paid total cash dividends of $736,000. a. Compute the amount of cash dividends paid during the third year to each of the three classes of stock. b. Compute the dividends paid per share during the third year for each of the three classes of stock. (Round your answers to 2 decimal places.) c. What was the average issue price of each type of preferred stock?

Answer rating: 100% (QA)

A for Cumulalive the dividend will be accumulated So Cumulative ... View the full answer