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In each case in the following? table, how many dollars of preferred dividends per share must...

In each case in the following? table, how many dollars of preferred dividends per share must be paid to preferred stockholders before common stock dividends are? paid? The amount of preferred dividends that must be paid in Case A before common dividends are paid is ?$ nothing. ?(Round to the nearest? cent.) A Cumulative $120 $7.80 2 B Noncumulative $80 5.0% 4 C Noncumulative $150 $3.75 1 D Cumulative $100 4.5% 5 E Cumulative $140 7.0% 0

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Answer #1
Case Type Par Value Div per period Per div passed
A Cumulative $120.00 $8 2
B Noncumulative $80.00 8% 4
C Noncumulative $100.00 $3.75 1
D Cumulative $100.00 4.50% 5
E Cumulative $140.00 7% 0

Case A: 2 quarters in arrears plus the latest quarter i.e. 8 x 3 = 24
Case B: Only the latest quarter i.e. 0.08 x 80 = 6.4
Case C: Only the latest quarter i.e. 3.75
Case D: 5 quarters in arrears plus the latest quarter i.e. 0.045 x 100 x 6 = 27  
Case E: Only the latest quarter i.e. 0.07 x 140 =  9.8

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