The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current year:
Common stock, $12 par value, 50,000 shares outstanding
Preferred stock, 10 percent, $10 par value, 5,000 shares outstanding
Retained earnings, $216,000
On September 1 of the current year, the board of directors was considering the distribution of an $85,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations):
The preferred stock is noncumulative.
The preferred stock is cumulative.
Required:
1. Determine the total and per share amounts that would be paid to the common stockholders and to the preferred stockholders under the two independent assumptions. (Round "per share" to 2 decimal places.)
