[The following information applies to the questions displayed below.] York’s out

Question

[The following information applies to the questions displayed below.]

York’s outstanding stock consists of 90,000 shares of noncumulative 7.0% preferred stock with a $5 par value and also 160,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:
  

Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)

2015 total cash dividends $19,800 2016 total cash dividends 29,500 2017 total cash dividends 285,000 2018 total cash dividends 435,000

Explanation / Answer

Par value Dividend Dividend Number of Preferred per Rate per Preferred Dividend Preferred Preferred Shares Share Share Annual Preferred Dividends 5 7.00% 0.35 90,000 31500 total paid to paid to Dividend in Cash preferred common Arreat at div paid yr end 2015 19,800 19,800 11,700 2016 29,500 29,500 13,700 2017 285,000 45,200 239,800 2018 435,000 31500 403,500 total 769,300 126,000 643,300

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