Walla Company has common and preferred stock outstanding as follows:
Common stock:100,000 shares, $30 par value
8 percent preferred stock:10,000 shares, $100 par value
Dividends on preferred stock have not been paid for the last three years (in addition to the current year).
Requirement 1:
If the company pays a total of $120,000 in dividends, how much will the common stockholders receive per share if the preferred stock is not cumulative? (Round your answer to 2 decimal places. What's the dividends per share? How much will the common stockholders receive per share if the preferred stock is cumulative?
Requirement 2:
How much will the common stockholders receive per share if the preferred stock is cumulative? (Omit the "tiny_mce_markerquot; sign in your response.)