Answer:
1) The dividend paid to preferred stockholders is $26,368
The dividend paid to Common stockholders is $96,632
2) The dividend paid to preferred stockholders is $26,368
The dividend paid to Common stockholders is $96,632
3) The dividend paid to preferred stockholders is $79,104
The dividend paid to Common stockholders is $43,896
Explanation:
1) The preferred stock is non-cumulative & the company has not missed any dividend in previous years
The dividend paid to preferred stockholders = 3,200 shares × $103 × 8 % = $26,368
The dividend paid to Common stockholders = $123,000 - $26,368 = $96,632
2) The preferred stock is non cumulative & the company did not pay dividend in each of the previous 2 years.
The dividend paid to preferred stockholders = 3,200 shares × $103 × 8 % = $26,368
The dividend paid to Common stockholders = $123,000 - $26,368 = $96,632
3) The preferred stock is cumulative & the company did not pay dividend in each of the previous 2 years.
The dividend paid to preferred stockholders = 3,200 shares × $103 × 8% × 3 years = $79,104
The dividend paid to Common stockholders = $132,000 - $86,400 = $43,896
