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Coronado, Inc., has 10000 shares of 4%, $100 par value, noncumulative preferred stock and 100000 shares of $1 par value common stock outstanding at December 31, 2021. If the board of directors declares a $199600 dividend, the preferred stockholders will receive 1/10th of what the common stockholders will receive. preferred stockholders will receive $40000 and the common stockholders will receive $159600. $40000 will be held as restricted retained earnings and paid out at some future date. preferred stockholders will receive the entire $199600. OO

Coronado, Inc., has 10000 shares of 4%, $100 par value, noncumulative preferred stock and 100000 shares of $1 par value common stock outstanding at December 31, 2021. If the board of directors declares a $199600 dividend, the preferred stockholders will receive 1/10th of what the common stockholders will receive. preferred stockholders will receive $40000 and the common stockholders will receive $159600. $40000 will be held as restricted retained earnings and paid out at some future date. preferred stockholders will receive the entire $199600. OO

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Coronado, Inc., has 10000 shares of 4%, $100 par value, noncumulative preferred stock and 100000 shares of $1 par value common stock outstanding at December 31, 2021. If the board of directors declares a $199600 dividend, the preferred stockholders will receive 1/10th of what the common stockholders will receive. preferred stockholders will receive $40000 and the common stockholders will receive $159600. $40000 will be held as restricted retained earnings and paid out at some future date. preferred stockholders will receive the entire $199600. OO
Transcribed Image Text:Coronado, Inc., has 10000 shares of 4%, $100 par value, noncumulative preferred stock and 100000 shares of $1 par value common stock outstanding at December 31, 2021. If the board of directors declares a $199600 dividend, the preferred stockholders will receive 1/10th of what the common stockholders will receive. preferred stockholders will receive $40000 and the common stockholders will receive $159600. $40000 will be held as restricted retained earnings and paid out at some future date. preferred stockholders will receive the entire $199600. OO
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