Waterway Company has outstanding 2,400 shares of $100 par, 8% preferred stock and 15,500 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers 2 decimal places, e.g. 6.85.) Paid- out $14,000 $28,100 $51,600 $ $ $ $77,300 $ (a) Preferred, noncumulative, and nonparticipating Preferred 5.83 8 8 8 $ $ $ $ Common Assumptions 0 .57 2.09 3.75 $ $ $ $ Preferred Preferred, cumulative, and fully participating 5.83 10.17 8 (b) 8 $ $ $ Common
Waterway Company has outstanding 2,400 shares of $100 par, 8% preferred stock and 15,500 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers 2 decimal places, e.g. 6.85.) Paid- out $14,000 $28,100 $51,600 $ $ $ $77,300 $ (a) Preferred, noncumulative, and nonparticipating Preferred 5.83 8 8 8 $ $ $ $ Common Assumptions 0 .57 2.09 3.75 $ $ $ $ Preferred Preferred, cumulative, and fully participating 5.83 10.17 8 (b) 8 $ $ $ Common
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Waterway Company has outstanding 2,400 shares of $100 par, 8% preferred stock and 15,500 shares of $10 par value common. The
following schedule shows the amount of dividends paid out over the last 4 years.
Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per share amounts using the
format shown below. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 2 decimal places, e.g. 6.85.)
Paid-
out
$14,000
$28,100
$51,600
$77,300
tA
Preferred, noncumulative,
and nonparticipating
Preferred
5.83
8
8
(a)
8
A
$
tA
$
Common
Assumptions
O
.57
2.09
3.75
LA
tA
LA
$
tA
Preferred
Preferred, cumulative,
and fully participating
5.83
10.17
8
(b)
8
LA
$
ta
$
LA
LA
Common
2.
3.
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