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Business, 22.04.2020 03:10 lola78830

Ultimate Sportswear has $100,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $500,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $30,000. This dividend should be distributed as follows
Preferred stock dividend: $100,000 * 8% = $8,000
Common stock dividend: $30,000 - $8,000 = $22,000

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Ultimate Sportswear has $100,000 of 8% noncumulative, nonparticipating, preferred stock outstanding....
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