Question - Aaron Burr Corp. had $100,000 of 10% , $20 par value preferred stock and 12,000 shares of $25 par value common stock outstanding throughout 2003.
a) Assuming that total dividends declared in 2003 were $88,000, and that the preferred stock is not cumulative but is fully participating, each common share should receive 2003 dividends of what amount?
b) Assuming that total dividends declared in 2003 were $88,000 and that the preferred stock is fully participating and cumulative with preferred dividends in arrears for 2002, preferred stockholders should receive 2003 dividends totaling what amount?
c) Assuming that total dividends declared in 2003 were $30,000, that cumulative nonparticipating preferred stock was issued on january 1, 2002, and that $5,000 of preferred dividends were declared and paid in 2002, the common stockholders should receive 2003 dividends totaling what amount?