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Distribution of Dividends between Preferred and Common stock

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Harris Company has 1,000 shares of $200 par value, 6, percent cumulative preferred stock outstanding and 5,000 shares of $40 par value common stock. In 2004, 2005, and 2006, Harris Company declared dividends of $10,000, $8,000 and $40,000, respectively. Determine the distribution of dividends between preferred stock and common stock for each of the three years.

Preferred Common Total
2004 $__________ __________ ____________
2005 $__________ __________ ____________
2006 $__________ __________ ____________

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Solution Summary

The solution computes dividend distribution for Harris Company.

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Cumulative Preferred Stock is a type of preferred stock which have a provision that if any dividends have been omitted in the past, they must be paid out to preferred shareholders first, before common shareholders can ...

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