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Green Planet Corp. has (a) 4,300 shares of noncumulative 14% preferred stock with a $2 par value and (b)17,100 shares of comm
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Answer #1

Solution:

Annual Noncumulative Preferred Dividend = 4300 *$2 * 14% = $1,204

Now,

Year 1 Dividends:

Noncumulative Preferred = $870

Common = $0

Year 2 Dividends:

Noncumulative Preferred = $1,204

Common = Total dividend - Noncumulative Preferred Dividend = $1710 - $1204 = $506

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