Chapter 12

The preferred stock pays a 10% cumulative dividend and is callable at Br. 105. During the first five years of operations, the corporation earned a total of Br. 4,460,000 and paid dividends of Br. 1 per share each year on the common stock. In 19X6, however, the corporation reported a net loss of Br. 1,600,000 and paid no dividends. ... ................
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