At the start of 2008, IBM has 20,000 outstanding shares of preferred stock, each with a...

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At the start of 2008, IBM has 20,000 outstanding shares of preferred stock, each with a $22 par value and a cumulative 6% ann

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Answer 1

Answer #1

Cumulative Preferred dividend paid till date = 20,000 * 22* 6% * 5 years = 132,000

Cumulative Preferred dividend per share = 132,000 / 22,000 = 6 per share

Total common stocks dividends per share = 23,000 + 19,000+ 88,000 + 163,000 = 293,000

Common stock dividend per share = 293,000 / 32,000 = 9.15625 per share

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Answer 2

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