The outstanding capital stock of Pennington Corporation consists of 2,600 shares of $108 par value, 6% preferred, and 5,800 shares of $52 par value common.
Assuming that the company has retained earnings of $88,000, 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. |
|
Preferred|
|
Common
|
|
$ ____ |
$______ |
| (b) |
The preferred stock is cumulative and nonparticipating. |
|
Preferred|
|
Common
|
|
$______ |
$______ |
| (c) |
The preferred stock is cumulative and participating. (Round rate of participation to 4 decimal places, e.g. 5.1234. Round final answer to 0 decimal places, e.g. 25,320.) |
|
Preferred
|
|Common
|
|
$_____ |
$_____ |