Question - Bronze Tint Trust has the following classes of stock:

Preferred Stock 4%, $12 Par Value; 8500 shares authorized, 7000 shares issued and outstanding.

Common Stock $1025 par value; 2300000 shares authorized, 1000000 shares issued and outstanding.

Requirements:

1. Bronze Tint declares cash dividends of $44000 for 2014. How much of the dividends go to preferred stockholders? How much goes to common stockholders?

2. Assume the preferred stock is cumulative and Bronze Tint passed the preferred dividend in 2012 and 201. In 2014 the company declares cash dividends of $46000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?

3. Assume the preferred stock is noncumulative and Bronze Tint passed the preferred dividend in 2012 and 2013. In 2014 the company declares cash dividends of $46000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?