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KetaFord1978
KetaFord1978
14.10.2020 • 
Business

Chicago Company reported the following information at the end of the current year: Common stock ( $9 par value; 48,000 shares outstanding) $ 432,000 Preferred stock, 15% ( $10 par value; 9,700 shares outstanding) 97,000 Retained earnings 289,500 The board of directors is considering the distribution of a cash dividend to the two groups of stockholders. No dividends were declared during the previous two years. Assume the three cases below are independent of each other. Case A: The preferred stock is noncumulative; the total amount of all dividends is $39,500. Case B: The preferred stock is cumulative; the total amount of all dividends is $43,650. Case C: The preferred stock is cumulative; the total amount of all dividends is $91,700

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