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Calculate the amount of dividends in arrears

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Question - "Zeta Co. has outstanding 100,000 shares of $100 par value cumulative preferred stock, which has a dividend rate of 7 percent. The company has not declared any cash dividends on the preferred stock for the last three years. Calculate the amount of dividends in arrears for the last three years on Zeta's preferred stock and briefly explain how this amount will be known to investors and creditors who may use the company's financial statements."

Reference no: EM133050989

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