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What is the amount of dividends payable to common stock

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Reference no: EM132885891

Question - Thompson Inc. has the following stock outstanding:

Preferred, 5%, $25 par value, 5,000 shares

Common, $100 par value, 2,500 shares

What is the amount of dividends payable to Common Stock, if Preferred stock is cumulative and in arrears four years (in addition to the current year); fully participating, and dividends declared are $175,000?

Reference no: EM132885891

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