Textbook Problem

Keener Company has had 1,000 shares of 7%, $100 par preferred stock and 40,000 sl1ares of $5 stated-value common stock outstanding for the last 3 years. During that period, dividends paid totaled $6,000, $28,000, and $30,000 for each year， respectively.

Required:

Compute the amount of dividends that Keener must have paid to preferred shareholders and common shareholders in each of the 3 years, given the following 3 independent assumptions:

1. 1. Preferred stock is nonparticipating and noncumulative.
2. 2. Preferred stock is nonparticipating and cumulative.
3. 3. Preferred stock is fully participating and cumulative.