Dividends The Keener Company has had 1,000 shares of 7%, $100 par value preferred stock and 40,000 shares of $5 stated value common stock outstanding for the last three years. During that period, dividends paid totaled $6,000, $28,000, and $30,000 for each year, respectively.
Required
Compute the amount of dividends that Keener must have paid to preferred stockholders and common stockholders in each of the three years, given the following four independent assumptions:
1. Preferred stock is nonparticipating and noncumulative
2. Preferred stock is nonparticipating and cumulative
3. Preferred stock is fully participating and cumulative
4. Preferred stock participates up to a maximum of 9% of its par value and is cumulative