Aggarwal Company has had 10,000 shares of 10%, $100 par-value preferred stock and $80,000 shares of $5 stated-value common stock outstanding for the last three years. During that period, dividends paid totaled $0, $200,00, and $220,000 for each year respectively.
Required: Compute the amount of dividends that must have been paid to preferred stockholders and common stockholders in each of the three years, given the following four independent assumptions:
a. Preferred stock is nonparticipating and cumulative
b. Preferred stock participates up to 12% of its par value and is cumulative
c. Preferred stock is fully participating and cumulative
d. Preferred stock is nonparticipating and noncumulative