E11-18 (Algo) Computing Dividends on Preferred Stock and Analyzing Differences LO11-4, 11-8, 11-9 The records of Hollywo

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E11 18 Algo Computing Dividends On Preferred Stock And Analyzing Differences Lo11 4 11 8 11 9 The Records Of Hollywo 1 (81.46 KiB) Viewed 67 times

E11-18 (Algo) Computing Dividends on Preferred Stock and Analyzing Differences LO11-4, 11-8, 11-9 The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current year: Common stock, $11 par value, 44,000 shares outstanding Preferred stock, 11 percent, $9 par value, 5,000 shares outstanding Retained earnings, $227,000 On September 1 of the current year, the board of directors was considering the distribution of an $76,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations): a. The preferred stock is noncumulative. b. The preferred stock is cumulative. Required: 1. Determine the total and per share amounts that would be paid to the common stockholders and the preferred stockholders under the two independent assumptions. (Round your "per share" amounts to 2 decimal places.) Preferred Common Noncumulative: Total Per share Cumulative: Total Per share