How much each class of stock should receive

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Question - The outstanding capital stock of Pronghorn Corporation consists of 2,000 shares of $100 par value, 8% preferred, and 5,100 shares of $50 par value common.

Assuming that the company has retained earnings of $86,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions.

(a) The preferred stock is noncumulative and nonparticipating.

-preferred stock 

-common stock

(b) The preferred stock is cumulative and nonparticipating

-preferred stock

-common stock

(c) The preferred stock is cumulative and participating.

-preferred stock

-common stock

Reference no: EM132934823

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