York\'s outstanding stock consists of 13,000 shares of noncumulative 5.20% prefe

Question

York's outstanding stock consists of 13,000 shares of noncumulative 5.20% preferred stock with a S10 par value and also 32,500 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: 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

Par value per preferred share Dividend rate Dividend per preferred share Number of preferred shares Preferred dividend Annual preferred dividend 10 5.20% 0.52 13000 6760 Total cash dividend paid Paid to preferred Paid to common Dividend in arrears at year end 2015 $5000 $5000 $0 $0 2016 4760 $4760 $0 $0 2017 90000 $6760 $83240 $0 2018 197000 $6760 $190240 $0 Total 296760 $23280 $273480 $0

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