Reference no: EM132612151

Question - Fools Gold Trust has the following classes of stock:

Data Table

Preferred Stock-3%, $13 Par Value; 9,000 shares authorized, 7,500 shares issued and outstanding

Common Stock-$0.35 Par Value; 2,300,000 shares authorized, 1,450,000 shares issued and outstanding. Read the requirements

Requirements -

1. Fools Gold declares cash dividends of $33,000 for 2018. How much of the dividends goes to preferred stockholders? How much goes to common stockholders?

2. Assume the preferred stock is cumulative and Fools Gold passed the preferred dividend in 2016 and 2017. In 2018, the company declares cash dividends of $48,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?

3. Assume the preferred stock is noncumulative and Fools Gold passed the preferred dividend in 2016 and 2017. In 2018, the company declares cash dividends of $48,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?