Question

Preferred stock- $25 par value, 10,eee shares authorized, 6,800 shares issued and outstanding Common stock-$10 par value, 100,00e shares authorized, 80,0e0 shares issued and outstanding Total paid-in' capital Retained earnings Total stockholders' equity $ 170, eee 800,e00 $ 970,000 550,e00 $1,520,000 The number of issued and outstanding shares of both preferred and common stock have been the same for the last two years Dividends on preferred stock are 8 percent of par value and have been paid each year the stock was outstanding except for the immediate past year. In the current year, management declares a total dividend of $50,000 a. Indicate the amount that will be paid to both preferred and common stockholders assuming the preferred stock is not cumulative b. Indicate the amount that willl be paid to both preferred and common stockholders assuming the preferred stock is cumulative.