Reference no: EM13572092

The outstanding capital stock of Pennington Corporation consists of 2,600 shares of $108 par value, 6% preferred, and 5,800 shares of $52 par value common.

Assuming that the company has retained earnings of $88,000, 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|	Common
	$____	$______

(b)	The preferred stock is cumulative and nonparticipating.

	Preferred|	Common
	$______	$______

(c)	The preferred stock is cumulative and participating. (Round rate of participation to 4 decimal places, e.g. 5.1234. Round final answer to 0 decimal places, e.g. 25,320.)

	Preferred	|Common
	$_____	$_____