Goodrich Inc. has had 7,500 shares of 9%, $100 par-value preferred stock and 15,000 shares of $10 par-value common stock outstanding for the past two years. During the most recent year, dividends paid totaled $100,000; in the prior year, dividends paid totaled $60,000. Three independent situations are listed below. Write out and circle your answer for the amount of dividends paid out to preferred and common shareholders this year. (Hint: How will the $100,000 be split up?)
Preferred stock is non-cumulative and non-participating:
Preferred stock is cumulative and non-participating:
Preferred stock is cumulative and participating: