The outstanding capital stock of Pennington Corporation consists of 2,200 shares of $107 par value, 6% preferred, and 5,800 shares of $60 par value common. Assuming that the company has retained earnings of $90,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions.
| (a) |
The preferred stock is noncumulative and nonparticipating.
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Preferred:
Common:
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| (b) |
The preferred stock is cumulative and nonparticipating
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Preferred:
Common:
| (c) |
The preferred stock is cumulative and participating. |