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How will the total dividend be divided

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Question - Mega, Inc., has common and 6 percent preferred stock outstanding as follows.

Preferred stock: 10,000 shares, $100 par value, cumulative

Common stock: 50,000 shares, $50 par value

The company declares a total dividend of $225,000. If the dividends on preferred stock are one year in arrears (in addition to the current year), how will the total dividend be divided between the common and preferred stock?

Reference no: EM132476596

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