Question - Wainwright Corporation has the following capital stock outstanding:
$10 par value common stock, outstanding 100,000 shares.
7% preferred stock, par $400, 8,000 shares, with 3 years in arrears.
Cash dividends of $1,000,000 were declared and paid near the end of the current year.
Requirements: Assume that the preferred stock is cumulative.
Calculate:
Dividends received by the preferred stockholders.
Dividends received by the common stockholders.