Problem Two
Suppose a company had the following stock outstanding and retained earnings on December 31, 2011.
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Common Stock (par $7; outstanding, 22,000 shares)
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$154,000
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Preferred Stock, 10% (par $10; outstanding, 6,000 shares)
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$60,000
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Retained Earnings
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$179,000
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Suppose that the preferred stock is noncumulative, and the total amount of dividends is $29,000.
Compute the amounts of dividends, in total and per share, that would be payable to each class of stockholders.