Sweet Company’s outstanding stock consists of 1,900 shares of cumulative 5% preferred stock with a $100 par value and 10,900 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 2,900 Year 2 $ 6,900 Year 3 $ 36,500 The amount of dividends paid to preferred and common shareholders in year 3 is:Multiple Choice $28,500 preferred; $8,000 common. $9,500 preferred; $27,000 common. $0 preferred; $36,500 common. $18,700 preferred; $17,800 common. $36,500 preferred; $0 common.
Sweet Company’s outstanding stock consists of 1,900 shares of cumulative 5% preferred stock with a $100 par value and 10,900 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 2,900 Year 2 $ 6,900 Year 3 $ 36,500 The amount of dividends paid to preferred and common shareholders in year 3 is:Multiple Choice $28,500 preferred; $8,000 common. $9,500 preferred; $27,000 common. $0 preferred; $36,500 common. $18,700 preferred; $17,800 common. $36,500 preferred; $0 common.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sweet Company’s outstanding stock consists of 1,900 shares of cumulative 5%
| Dividends Declared & Paid | |
|---|---|
| Year 1 | $ 2,900 |
| Year 2 | $ 6,900 |
| Year 3 | $ 36,500 |
The amount of dividends paid to preferred and common shareholders in year 3 is:Multiple Choice
-
$28,500 preferred; $8,000 common.
-
$9,500 preferred; $27,000 common.
-
$0 preferred; $36,500 common.
-
$18,700 preferred; $17,800 common.
-
$36,500 preferred; $0 common.
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