0 Required information The following information applies to the questions displa

Question

0 Required information The following information applies to the questions displayed below. York's outstanding stock consists of 60,000 shares of noncumulative 70% preferred stock with a $5 par value and also 210,000 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: 2015 total cash dividends 10,900 2016 total cash dividends 2017 total cash dividends 2018 total cash dividends 19,000 355,000 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 your "Dividend per Preferred Share" answers to 3 decimal places.)

Explanation / Answer

Year Total Dividend paid Annual Preferred Dividend Actual Preferred Dividend Paid Dividend to Common Stockholders 2015 10,900 21,000 10,900 Nil 2016 19,000 21,000 19,000 Nil 2017 205,000 21,000 21,000 184000 2018 355,000 21,000 21,000 334000 Total Dividend paid 71,900 518,000 Total Dividend paid to Preferred Shockholders $71,900 Total Dividend paid to Common Stockholders $518,000 Annual Preference Dividend rate = 7% Preferred Stock (60,000 shares of $ 5 each) = $ 300,000 Annual Preferred Dividend (300,000*7%) = $21,000 Note: Preferred Dividend of $ 21,000 must be paid before dividend paid to Common Stockholders Note: If total dividend paid is less than annual preferred dividend, then total dividend paid is only to preferred dividend. Note: The Dividend to common Stockholders paid is equal to total dividend paid less Annual preferred Dividend

Related Questions

Navigate

• Browse (All)
• Browse
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.