Carpenter Distribution Corporation's contributed capital section of its balance sheet follows:        

4% Preferred stock: 65,000 shares outstanding, $10 par value      $ 650,000        

Common stock: $8 par value                                                           $ 400,000        

During the last two years, Carpenter Distribution Corporation did not declare any dividends to its shareholders. In year 3, Carpenter declares and pays total dividends of $100,000.                    

Required: 

Calculate separately the dividends paid to preferred and common shareholders in year 3 if the preferred stock is cumulative.

Answer rating: 100% (QA)

Preferred dividend 26000 3 years 78000 Common dividend 10000... View the full answer