When Crossett Corporation was organized in January, Year it immediately issued shares of $ par, percent, cumulative preferred stock and shares of $ par common stock. Its earnings history is as follows: Year net loss of $; Year net income of $; Year net income of $ The corporation did not pay a dividend in Year When Crossett Corporation was organized in January, Year it immediately issued shares of $ par, percent, cumulative
preferred stock and shares of $ par common stock. Its earnings history is as follows: Year net loss of $; Year net
income of $; Year net income of $ The corporation did not pay a dividend in Year
Required
a How much is the dividend arrearage as of January Year
Dividend arrearage
b Assume that the board of directors declares a $ cash dividend at the end of Year remember that the Year and Year
preferred dividends are due How will the dividend be divided between the preferred and common stockholders?
