what is the average price at which each preferred share sold for what is the average 644455
Dividing dividends between preferred and common stock Northern Communications has the following stockholders’ equity:
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NORTHERN COMMUNICATIONS Stockholders’ Equity |
|
|
Paid in Capital: |
|
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Preferred stock, 6%, $11 par, 150,000 shares authorized |
|
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20,000 shares issued and outstanding |
$ 220,000 |
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Common stock, $3 par, 575,000 shares authorized |
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400,000 shares issued and outstanding |
1,200,000 |
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Paid in capital in excess of par—common |
1,000,000 |
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Total paid in capital |
2,420,000 |
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Retained earnings |
190,000 |
|
Total stockholders’ equity |
$2,610,000 |
Requirements
1. First, determine whether preferred stock is cumulative or noncumulative.
2. Compute the amount of dividends to preferred and to common for 2011 and 2012 if total dividends are $12,200 in 2011 and $55,000 in 2012.
3. What is the average price at which each preferred share sold for? What is the average price at which each common share sold for?