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York’s outstanding stock consists of 80,000 shares of noncumulative 7.0% preferr

ID: 2579509 • Letter: Y

Question

York’s outstanding stock consists of 80,000 shares of noncumulative 7.0% preferred stock with a $5 par value and also 140,000 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 $ 16,500

2016 total cash dividends 26,000

2017 total cash dividends 275,000

2018 total cash dividends 425,000

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.)

Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2015 $16,500 2016 26,000 2017 275,000 2018 425,000 Total: $742,500 $0 $0

Explanation / Answer

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.)

Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: 5 7% 0.35 80000 28000 Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2015 $16,500 16500 2016 26000 26000 2017 275000 28000 247000 2018 425000 28000 397000 Total 742500 98500 644000