What the common stockholders will receive

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Problem 1: Lott Co. has outstanding 20,000 shares of 8% preferred stock with a $10 par value and 100,000 shares of $3 par value common stock. Dividends have been paid every year except last year and the current year. If the preferred stock is cumulative and fully participating and $131,000 is distributed, the common stockholders will receive:

Select one:

a. $63,333
b. $51,000
c. $69,000
d. $78,600
e. $83,400

Reference no: EM132778279

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