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Compute the dividends to be distributed

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Question - A company has $200,000 of 5% cumulative, preferred stock outstanding, and $150,000 of common stock outstanding. In the company's first year of operation, no dividends were paid, but during the second year, it paid cash dividends of $25,000. Compute the dividends to be distributed to (1) preferred shares and (2) common shares.

Reference no: EM131734280

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