Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 35

Preferred Stock Alternatives
Easy Moncy, Inc., has the following capital structure:

The number of issued and outstanding shares of both preferred and common stock have been the same for the last two years. Dividends on preferred stock are 8 percent of par value and have been paid each year the stock was outstanding except for the immediate past year. In the current year, management declares a total dividend of $60,000. Indicate the amount that will be paid to both preferred and common stockholders assuming ( a ) the preferred stock is not cumulative and ( b ) the preferred stock is cumulative.