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a) Dividends for Preferred Stock = $100,000 * 7% = $7,000
Dividends for common shareholders = $64,000 - $7,000
Dividends for common shareholders = $57,000
b) Dividends for Preferred Stock = $100,000 * 7% * 2 years = $14,000
c) Arrear of Previous year dividend (2016) = 100000* 7% - 5000 = 2000
Current year dividend to preferred stock = 100000*7%= 7000
Total dividend to be paid to preferred stock= 2000+7000= 9000
Dividend to be paid to common shareholders= 30000-9000 = 21000
Larkspur Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25...
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