Determine how much of the dividend will be paid to the preferred and common stockholders

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The stockholders’ equity section of Green Grass Corp showed the following:

Preferred Stock, 6%, $25 par, 11,000 shares issued & outstanding​​$   275,000

Common Stock, $20 par, 123,750 shares issued & outstanding​​$2,475,000

​Additional Paid-in Capital in Excess of Par​​​​​$   350,000

Retained Earnings​​​​​​​​$1,900,000

 

The preferred stock is cumulative, participating and 4 years in arrears.  A $380,000 cash dividend is declared.  

 

Required:  Determine how much of the dividend will be paid to the preferred and common stockholders.

Preferred Stockholders:  _______________​​Common Stockholders:  ________________

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