Donate SIGN UP

Partially participation(PS)_

Avatar Image
omaruko | 05:02 Thu 28th Apr 2005 | Business & Finance
0 Answers
Hi all
Pls. help me out how to solve this problem

①A own preferred stock $100 par 5% 1000issues
          common stock $200 par 5% 1000issues
preferred stock fully participate
dividend payable $21,000

②A own preferred stock $100 par 6% 1000issues
          common stock $200 par 5% 1000issues
preferred stock partially participate
dividend payable $21,000

①I can understand how to figure out the dividend of PS and CS
preferred stock =$7000
common stock =$14,000


I calculated it as follows
PS=6%X$100X1000=$6000
CS=5%X$200X1000=$10000

Remaining

$5000X100,000/300,000=$1667
$5000X200,000/300,000=$3333

PS=$6000+$1667=$7667
CS=$10000+$3333=$13333

Am I right I solve the above way

Answer is

Remaining $6000 is divided as follows

PS=(6%-5%)X$100X1000=$1000
CS=$6000-$1000=$5000

PS=$5000+$1000=$6000
CS=$10000+$5000=$15000

I would appreciate it if you give me any advice.

Gravatar

Answers

rss feed

Best Answer

Nobody has yet answered this question. Once some answers have been given, omaruko will be able to select one answer as the best. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
There are no answers available for this question.

rss feed

Do you know the answer?

Partially participation(PS)_

Answer Question >>

Related Questions

Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.