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Partially participation(PS)_

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omaruko | 04:02 Thu 28th Apr 2005 | Business & Finance
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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.

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