1/ The following information applies to the questions displayed below.] York’s o

Question

1/ The following information applies to the questions displayed below.]

York’s outstanding stock consists of 85,000 shares of noncumulative 6.0% preferred stock with a $5 par value and also 150,000 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:
  

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.)

2/

Compute the dividend yield for each of these four separate companies.

2015 total cash dividends $ 13,900 2016 total cash dividends 23,500 2017 total cash dividends 280,000 2018 total cash dividends 430,000

Explanation / Answer

1 Par Value per Preferred Share Dividend Rate Dividend per preferred share No. of Preferred share Preferred Dividend Annual Preferred Dividend: $5 6.00% $0.30                                     85,000 $25,500 Total Cash Dividend Paid Paid to preferred Paid to Common Dividend in Arrears at year end 2015 $13,900 $13,900 $0 $11,600 2016 $23,500 $23,500 $0 $13,600 2017 $280,000 $39,100 $240,900 $0 2018 $430,000 $25,500 $404,500 $0 Total $747,400 $102,000 $645,400 2 Company Choose Numerator / Choose Denominator = Dividend Yield Dividend per share / Market value per share = Dividend Yield 1 $19.00 / $250.00 = 7.60% 2 $16.00 / $181.82 = 8.80% 3 $14.70 / $141.35 = 10.40% 4 $1.70 / $127.60 = 1.33%

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