Company XYZ has 2,000 shares of 6%, $100 par value, cumulative preferred stock and 4,000 common...

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Answer 1

Answer #1

Total Dividend paiid			40000
Less: Total Preferred Dividend
Arrears in dividend		6000
Current yr dividend		12000	18000
(200000*6%)
Dividend to common Stockholder			22000

Dividend per share:
Preferred (18000/2000)			9
Common (22000/4000)			5.5


Answer is D. Preferred Stock dividend $ 9 per share
	Common Stock Dividend $ 5.50 per share

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Answer 2

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