Insurance2 mins ago
Partially participation(PS)_
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
②
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.
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
②
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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