How much common stockholders receive per share


Walla Company has common and preferred stock outstanding as follows:

Common stock:100,000 shares, $30 par value

8 percent preferred stock:10,000 shares, $100 par value

Dividends on preferred stock have not been paid for the last three years (in addition to the current year).

Requirement 1:

If the company pays a total of $120,000 in dividends, how much will the common stockholders receive per share if the preferred stock is not cumulative? (Round your answer to 2 decimal places. What's the dividends per share? How much will the common stockholders receive per share if the preferred stock is cumulative?

Requirement 2:

How much will the common stockholders receive per share if the preferred stock is cumulative?

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Accounting Basics: How much common stockholders receive per share
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