Question

Sweet Company’s outstanding stock consists of 1,700 shares of cumulative 4% preferred stock with a $100 par value and 11,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends declared...

a) Are insufficient to calculate the total cash dividends.
b) Should be higher for preferred stockholders.
c) Cannot be determined from the given information.
d) Depend on the market conditions at the time of declaration.

Answer 1

The total cash dividends declared by Sweet Company cannot be determined from the given information.

Step-by-step explanation:

The question is asking about the total cash dividends declared and paid by Sweet Company. From the information given, we know that Sweet Company has 1,700 shares of cumulative 4% preferred stock and 11,700 shares of common stock. However, the question does not provide the specific amounts of dividends declared for each type of stock. Therefore, it is not possible to calculate the total cash dividends from the given information.

Answer: The total cash dividends cannot be determined from the given information (option c).