Preferred stock is nonparticipating and cumulative

Assignment Help Financial Accounting

Reference no: EM1376231

A Company has had 10,000 shares of 10 percent, $100 par-value preferred stock and $80,000 shares of $5 stated-value common stock outstanding for the last 3 years. Through that period, dividends paid totaled $0, $200,00, and $220,000 for each year respectively.
Required: Calculate the amount of dividends that must have been paid to preferred stockholders and common stockholders in each of the three years, given the subsequent four independent assumptions:

a. Preferred stock is nonparticipating and cumulative

b. Preferred stock participates up to 12 percent of its par value and is cumulative

c. Preferred stock is fully participating and cumulative

d. Preferred stock is noncumulative and nonparticipating

Reference no: EM1376231

Questions Cloud

Question about high unemployment rate : Despite very low growth of GDP in 2008 and 2009, and still high unemployment rate of 9.5 percent in June 2010.

Prepare a financial statement analysis : Prepare a financial statement analysis of a public company, which I picked Wal-Mart

Describe the process through which money is created : Explain the process through which money is constructed. Describe how current events less than ninety days have affected this process and the effect current events will have on the economy as a whole.

Adjusted for investee net income : Adjusted for investee net income and dividends as agreed by the equity method. After implementing the change to equity method, if financial statements were prepared

Preferred stock is nonparticipating and cumulative : Preferred stock is nonparticipating and cumulative and Preferred stock participates up to 12 percent of its par value and is cumulative

Seasonal economic factors and cyclical economic factors : The United States is currently recovering from its bad recession in over twenty-five years. Applying the resource provided in this and earlier modules of course describe what factors or activities you think helped cause this economic condition.

Classified as being beneficial in future capitalized : Using financial statements from a company of your choice, categorize the expenditures on operational assets of the company based on whether they give future benefits.

What would your export response to coca-cola : How would concepts of utility, income, and substitution impact your purchases based on the rise in cost of carbonated beverages?

Determine the cost of merchandise sold for march : Cost of Merchandise Sold - Based on the subsequent data, determine the cost of merchandise sold for March:

User Account

All Pages