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Computing dividends on preferred and common stock

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Great Lakes Manufacturing, Inc. reported the following:

Stockholders' Equity
Preferred stock, cumulative, $1 par value, 5%, 60,000 shares issued......... $ 60,000
Common stock, $0.10 par value, 9,130,000 shares issued........................ 913,000

Great Lakes Manufacturing has paid all preferred dividends through 20X1.

Required:
Compute the total amounts of dividends to both preferred and common for 20X4 and 20X5 if total dividends are $50,000 in 20X4 and $100,000 in 20X5.

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Solution Summary

The solution computes dividends on preferred and common stock for Great Lakes Manufacturing, Inc.

Solution Preview

Preferred Dividend = 60000*5% = 3,000

As preferred dividend is paid till 20X1 ...

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