Determine the amount of dividends each class of stock

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Reference no: EM131532806

Abracadabra company has the following stocks issued and outstanding when the board of directors declared a $200,000 dividend.

Preferred stock: 18,000 shares issued and outstanding, 6% $30 per value

Common stock: 110,000 shares issued and outstanding, $10 par value

Determine the amount of dividends each class of stock will receive given the following assumptions:

Preferred stock is non-cumulative

Preferred stock is cumulative (two years in arrears)

Preferred stock is cumulative (one year in arrears)

Reference no: EM131532806

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