Exercise 11-8 Dividends on common and noncumulative preferred stock LO C2 York\'
ID: 2402688 • Letter: E
Question
Exercise 11-8 Dividends on common and noncumulative preferred stock LO C2 York's outstanding stock consists of value and also 77,500 shares of common stock with a $1 par value preferred stock with a $10 par . During its first four years of operation, 2015$ 15,000 2016 2017110,000 2018193,000 17,600 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.) Answer is not complete. Par Val of Preferred PreferredDividend Div per Preferred per Preferred Rate Share Annual Preferred Dividend: Total Cash Dividend Paid to Preferred Common at year Dividends in Arrears Paid to end 15,000 15,000S 17600 2015 2016 2017 2018 Total: 17600 110.000 | 18.600 | 91.400 el 193,000 $ 335,600 IS 69.800 |$ 265.800Explanation / Answer
Par value per preferred share
Dividend rate
Dividend per preferred share [Calculation]
Number of preferred shares
Preferred dividend
[Calculation]
Annual Preferred dividend
$10
6%
0.6 [10*6%]
31000
$18600 [ 31000*0.6]
Total cash dividend paid
Paid to preferred
Paid to common
2015
15000
15000
0
2016
17600
17600
0
2017
110000
18600
91400
2018
193000
18600
174400
Total
335600
69800
265800
Total Dividend paid to:
Equity = 265800
Preferred = 69800
Par value per preferred share
Dividend rate
Dividend per preferred share [Calculation]
Number of preferred shares
Preferred dividend
[Calculation]
Annual Preferred dividend
$10
6%
0.6 [10*6%]
31000
$18600 [ 31000*0.6]
Total cash dividend paid
Paid to preferred
Paid to common
2015
15000
15000
0
2016
17600
17600
0
2017
110000
18600
91400
2018
193000
18600
174400
Total
335600
69800
265800
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