Question: Abracadabra company has the following stocks issued and outstanding when the board of directors declared a $200,000 dividend.

Preferred stock: 18,000 shares issued and outstanding, 6% $30 per value

Common stock: 110,000 shares issued and outstanding, $10 par value

Determine the amount of dividends each class of stock will receive given the following assumptions:

Preferred stock is non-cumulative

Preferred stock is cumulative (two years in arrears)

Preferred stock is cumulative (one year in arrears)