Wade\'s outstanding stock consists of 29.000 shares of noncumulative 7.10% prefe
ID: 2764436 • Letter: W
Question
Wade's outstanding stock consists of 29.000 shares of noncumulative 7.10% preferred stock with a $10 par value and also 72.500 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. (Leave no cells blank - be certain to enter "0" wherever required. Omit the $" sign in your response.) Compute the total dividends paid to each class for the four years combined. (Omit the sign in your response.)Explanation / Answer
Where prefered dividend =par value*prefered shares outstanding*prefered dividend %age
Common stock dividend = cash dividend after prefered dividends are paid out
Year Total dividend Current Prefered dividend Prefered dividend paid Common stock dividend 2011 16000 20590 16000 0 2012 26000 20590 20590 5410 2013 90000 20590 20590 69410 2014 193000 20590 20590 172410 Total= 77770 247230Related Questions
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