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PROBLEM Two EQUITY West Valley Corporation had the following stockholders' equity information from the balance sheet for year ending 12/31/2018. Preferred Stock-S50 par value, 10% cumulative, 10,000 shares authorized, 4,000 shares issued Treasury Stock on Preferred S50 par value, 10% cumulative 1000 shares, company paid $150,000 for the Treasury Stock Common Stock-S2 par value, 1,000,000 shares authorized, 60,000 shares issued Capital Excess of Par $480,000 Treasury Stock on Common 8,000 shares, company paid $160,000 for the Treasury Stock Retained Earnings $45,000,000 A). If dividends were paid in the amount of $4,000,000 how much would the preferred shareholders and common stockholders receive assuming no dividends in the arrears? B). Assuming the company has been in the arrears for two years, how much in dividends would the preferred shareholders and common shareholders receive if the company paid $8,000,000 in dividends this current year? C). What is the dividend pay-out per share for both the common and preferred stock? D). What would be the impact on the balance sheet if the company announced a 2-1 stock split on preferred stock? E) TIe company has announced a 10% stock dividend on the common stock when the market value of each common share was $25. Describe the impact to the company of such an announcement. Provide specific numbers. F). What is the result if the company announced a common stock dividend when the market price was $ 30 per share

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