Waterway Inc., has 3700 shares of 5%, $50 par value, cumulative preferred stock and 99400 shares of $1 par value common stock outstanding at December 31, 2020, and December 31, 2019. The board of directors declared and paid a $4100 dividend in 2019. In 2020, $25400 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2020? $14400 $9250 $12700 $11000

Waterway Inc., has 3700 shares of 5%, $50 par value, cumulative preferred stock and 99400 shares of $1 par value common stock outstanding at December 31, 2020, and December 31, 2019. The board of directors declared and paid a $4100 dividend in 2019. In 2020, $25400 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2020? $14400 $9250 $12700 $11000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 5MC

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Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
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