How much will the preferred and common stockholders receive

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Question - Basta bwisit, Inc., has P800,000 of 6% preferred stock and P1,200,000 of common stock outstanding, each having a par value of P10 per share. No dividends have been paid or declared during 2021 and 2022. As of December 31, 2023, it is desired to distribute P396,000 in dividends.

How much will the preferred and common stockholders receive under each of the following assumptions:

(a) The preferred is noncumulative and nonparticipating.

(b) The preferred is cumulative and nonparticipating.

(c) The preferred is cumulative and fully participating.

(d) The preferred is cumulative and participating to 10% total.

Reference no: EM133184355

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