York’s outstanding stock consists of 31,000 shares of noncumulative 6.00% prefer

Question

York’s outstanding stock consists of 31,000 shares of noncumulative 6.00% preferred stock with a $10 par value and also 77,500 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: 2015 $ 15,000 2016 17,600 2017 110,000 2018 193,000 Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. (Round "Dividend Rate (%)" to 1 decimal place and "Dividend per Preferred Share" to 2 decimal places.)

Explanation / Answer

Annual preferred dividend = 31000*10*6% = 18600

Dividend distribution :

Total dividend Preferred dividend Common Dividend 2015 15000 15000 0 2016 17600 17600 0 2017 110000 18600 91400 2018 193000 18600 174400 Total 335600 69800 265800

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