Reference no: EM132488487

The charter for Rogers, Incorporated, has authorized the following capital stock: 0 Common stock, par $10, 103,000 shares Preferred stock, 9 percent, par value $8 per share, 4,000 shares The company had previously sold 40,000 shares of common stock and 3,000 shares of preferred stock.

During 2014, the following selected transactions were completed.

Question 1. Rogers declared and paid dividends in the amount of $10,000.

Question (a) Assume the Preferred stock is non-cumulative. How much was paid to the holders of preferred stock? How much was paid to the common stockholders?

Question (b) How would your response change if the Preferred stock was instead cumulative, with one year's dividends in arrears?

Question 2. (a) Describe the ?nancial statement effects if Rogers declared and issued a 2-for-1 common stock split.

Question (b) How would your response change if Rogers instead declared a 100% common stock dividend?

Question (c) How would your response change if Rogers instead declared a 10% common stock dividend, when the current market price of the stock is $57 per share.