Answer:
37,000 common stock outstanding
preferred stock dividends = $82,000 x 10% = $8,200
Case A The preferred stock is noncumulative, the total amount of dividends is $32.000
- dividends distributed to preferred stockholders = $8,200
- dividends distributed to common stockholders = $32,000 - $8,200 = $23,800
since the preferred stocks are non-cumulative, if dividends are not paid during a certain they are "lost" and will not be recovered.
Case B The preferred stock is cumulative, the total amount of dividends is $24,600
- dividends distributed to preferred stockholders = $8,200 x 3 = $24,600
- dividends distributed to common stockholders = $0
Case C The pretend stock is cumulative, the total amount of all dividends is $90,200
- dividends distributed to preferred stockholders = $8,200 x 3 = $24,600
- dividends distributed to common stockholders = $90,200 - $24,600 = $65,600
