The Carol Company has issued 10%, fully participating, cumulative preferred stock with a total par value of $600, 000 and common stock with a total par value of $900, 000.No dividends are in arrears.How much cash will be paid to the preferred stockholders and the common stockholders, respectively, if cash dividends of $141, 000 are distributed?
A) $ 60, 000 and $90, 000
B) $114, 000 and $27, 000
C) $ 51, 000 and $90, 000
D) $ 60, 000 and $81, 000
Correct Answer:
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