Answer:
preferred stock dividends = 1,900 x $100 x 9% = $17,100
common stocks = 5,400 stocks
a) distribution of dividends:
preferred stocks = $17,100
common stocks = $70,400
b) distribution of dividends:
preferred stocks = $17,100 x 3 = $51,300
common stocks = $36,200
c) distribution of dividends:
preferred stocks = $51,300 + (1,900/7,300 x $19,100) = $56,271
common stocks = $17,100 + (5,400/7,300 x $19,100) = $29,429
