Dividing cash dividends between preferred and common stock Copperhead Trust has the following classes of stock: Requirements Copperhead declares cash dividends of $44,000 for 2018. How much of the...

Dividing cash dividends between preferred and common stock

Copperhead Trust has the following classes of stock:

Requirements

1. Copperhead declares cash dividends of $44,000 for 2018. How much of the dividends goes to preferred stockholders? How much goes to common stockholders?


2. Assume the preferred stock is cumulative and Copperhead passed the preferred dividend in 2016 and 2017. In 2018, the company declares cash dividends of $46,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?


3. Assume the preferred stock is noncumulative and Copperhead passed the preferred dividend in 2016 and 2017. In 2018, the company declares cash dividends of $46,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?

Extracted text: Preferred Stock-6%, $12 par value; 8,500 shares authorized, 7,000 shares issued and outstanding Common Stock-$0.10 par value; 2,100,000 shares authorized, 1,400,000 shares issued and outstanding