York’s outstanding stock consists of 41,000 shares of cumulative 9.00% preferred
ID: 2411300 • Letter: Y
Question
York’s outstanding stock consists of 41,000 shares of cumulative 9.00% preferred stock with a $10 par value and also 102,500 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. 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 2 decimal places.)
York's outstanding stock consists of 41,000 shares of cumulative 9.00% preferred stock with a $10 par value and also 102,500 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 S 30,000 2016 2017 2018 32,775 64,400 91,900 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 2 decimal places.) ue per Preferred Share Dividend Rate per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: 0| 9.0% O s 0.90. 41,000 $ 36,900 S 10.00 Total Cash Dividend Paid Dividends in Arrears at year-end Paid to Paid to Common Preferred 30,000 30,000 32,775 2015 2016 2017 2018 Total 32,775 64,400 91,900 S 219,075 0 36,900 99,675 55,000 55,000 0Explanation / Answer
working:
2015:
preferred dividend to be paid = 36,900
but paid = 30,000
arrears = 36,900 - 30,000 =>6,900
2016:
preferred dividend to be paid = 36,900
but paid = 32,775
arrears = 36,900 - 32,775 =>4,125
total arrears at year end = 6,900 of 2015 + 4,125 =>$11,025.
2017:
dividend paid to preferred shareholders = 36,900 of current year + 11025 arrears =>47,925.
dividend paid to common stock holders = 64,400 total dividend - 47,925 paid to preferred share holders
=>16,475.
Par value per preferred share dividend rate divdend per preferred share number of preferred shares preferred dividend annual preferred dividend: $10 9.0% $0.90 41,000 $36,900 Total cash dividend paid to preferred paid to common dividends in arrears at year end 2015 $30,000 $30,000 $0 $6,900 2016 32,775 32,775 $0 $11,025 2017 64,400 47,925 $16,475 0 2018 91,900 36,900 55,000 0 Total 219,075 $147,600 $71,475Related Questions
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