Reference no: EM132546000

Question - Written, Inc. has outstanding 600,000 shares of $2 par common stock and 120,000 shares of no-par 6% preferred stock with a stated value of $5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year.

Q1. Assuming that $225,000 will be distributed as a dividend in the current year, how much will the common stockholders receive?

a. Zero.

b. $117,000.

c. $153,000.

d. $189,000.

Q2. Assuming that $95,000 will be distributed as a dividend in the current year, how much will the preferred stockholders receive?

a. $32,000.

b. $36,000.

c. $72,000.

d. $95,000.