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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Solution Summary
The solution explains how to calculate the amount of dividends paid to preferred and common stockholders
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(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 ...
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