Vaughn, Inc., has 9000 shares of 5%, $100 par value, noncumulative preferred stock and 90000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a...

Question-based on "dividend".

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Extracted text: Vaughn, Inc., has 9000 shares of 5%, $100 par value, noncumulative preferred stock and 90000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $201300 dividend, the preferred stockholders will receive the entire $201300. O preferred stockholders will receive $45000 and the common stockholders will receive $156300. $45000 will be held as restricted retained earnings and paid out at some future date. preferred stockholders will receive 1/10th of what the common stockholders will receive.