A Company Has $200,000 of 10% Noncumulative,nonparticipating,preferred Stock Outstanding,and $150,000

Essay

A company has $200,000 of 10% noncumulative,nonparticipating,preferred stock outstanding,and $150,000 of common stock outstanding.In the company's first year of operation,no dividends were paid,but during the second year,it paid cash dividends of $25,000.Compute the dividends to be distributed to (1)preferred shares and (2)common shares.