How much will the preferred stockholders receive

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Question problem : Ninabea, Inc. has outstanding 200,000 shares of P2 par common stock and 40,000 shares of no-par 8% preferred stock with a stated value of P5. The preferred stock is cumulative. Dividends have been paid in every year except the past two years and the current year.

Question a. Assuming that P100,000 will be distributed as a dividend in the current year, how much will the common stockholders receive?

Question b. Assuming that P42,000 will be distributed as a dividend in the current year, how much will the preferred stockholders receive?

Reference no: EM132466971

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