Rosewell company has had 5,000 shares of 9%, $100 par-value preferred stock and 10,000 shares of $10 par-value common stock outstanding for the last two years. During the most recent year,dividends paid totaled 65,000 in the prior year, divdends paid totaled $40,000.
Required,Compute the amount of dividends that must have been paid to preferred stockholders and common stockholders in each year given the following independent assumptions:
a.Preferred stock is fully participating and cummulative
b. Preferred stock in nonparticipating and noncummulative
c. Preferred stock particpates up to 10% of its par value and is cummulative
d. Preferred stock is nonparticipating and cummulative