Computing dividends on preferred and common stock The following elements of stockholders’ equity are adapted from the balance sheet of Sandler Marketing, Corp.
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SANDLER MARKETING, CORP. Stockholders’ Equity |
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Preferred stock, 7% cumulative, $2 par, |
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75,000 shares authorized, issued and outstanding |
$150,000 |
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Common stock, $0.10 par, 10,250,000 shares authorized, |
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9,500,000 shares issued and outstanding |
950,000 |
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Sandler paid no preferred dividends in 2011.
Requirement
1. Compute the dividends to the preferred and common shareholders for 2012 if total dividends are $195,000.