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    Amount of dividends

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    Norton's outstanding stock consists of (a) 13,0000 shares of noncumulative 8% preferred stock with a $10 par value and (b) 32,500 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends.

    2009........$8,000
    2010.......$24,000
    2011......$120,000
    2012......$197,000

    Determine the amount of dividends paid each year to each of the two classese of stockholders. Also compute the total dividends paid to each for the four years combined.

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    https://brainmass.com/business/accounting/amount-dividends-309024

    Solution Preview

    (a) Preferred stock - There are 13,000 shares of par value $10 and 8% dividend and non cumulative. The dividend amount each year would 13,000 X 10 X 8% = $10,400
    Preferred dividends have the first claim on ...

    Solution Summary

    The solution explains how to calculate the amount of dividends paid to preferred and common stockholders

    $2.19

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