Discuss what is dividend distribution to each class of stock

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Edgefield Corporation has issued 10%, participating, cumulative preferred stock with a total par value of $22,000 and common stock with a total par value of $66,000. Therefore, the preferred stock par value is 1/4 and the common stock par value is 3/4 of the total par value. Edgefield intends to distribute cash dividends of $14,000, and there are no dividends in arrears. What is the dividend distribution to each class of stock if the preferred stock is fully participating?

Aiken Corporation has compensatory share options for employees to purchase 4,000 common shares at $12 per share outstanding the entire year. The average market price for the common stock during the year was $20 per share. The unrecognized compensation cost (net of tax) related to the share options is $1 per share. What is the assume dincrement in the denominator for computing Aiken's diluted earnings per share?

Reference no: EM131792602

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