Master Company has 10,000 preferred shares with 2% cumulative dividends with a par value per share of $ 50 and 25,000 common shares at $ 75 par. The company declares the following cash dividends: Year 1 $ 30,000 Year 2 6,000 Year 3 80,000 Required: Determine the dividends for the preferred and common shares for each year. Present your answer graphically and clearly.
Master Company has 10,000 preferred shares with 2% cumulative dividends with a par value per share of $ 50 and 25,000 common shares at $ 75 par. The company declares the following cash dividends: Year 1 $ 30,000 Year 2 6,000 Year 3 80,000 Required: Determine the dividends for the preferred and common shares for each year. Present your answer graphically and clearly.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Company has 10,000 preferred shares with 2% cumulative dividends with a par value per share of $ 50 and 25,000 common shares at $ 75 par. The company declares the following cash dividends:
Year 1 $ 30,000
Year 2 6,000
Year 3 80,000
Required:
Determine the dividends for the preferred and common shares for each year. Present your answer graphically and clearly.
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