A portion of the stockholders\' equity section from the balance sheet of Walland

Question

A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as follows:

Assume that all the stock was issued on January 1 and that no dividends were paid during the first two years of operation. During the third year, Walland Corporation paid total cash dividends of $736,000.

Compute the amount of cash dividends paid during the third year to each of the three classes of stock.(Omit the "$" sign in your response.)

Compute the dividends paid per share during the third year for each of the three classes of stock.(Round your answers to 2 decimal places. Omit the "$" sign in your response.)

What was the average issue price of each type of preferred stock?(Omit the "$" sign in your response.)

A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as follows:

Explanation / Answer

Hi, If you like my answer please rate me lifesaver first. Cumulative preferred stock are paid dividend at first, and the remaining is paid to non-cumulative and later to common stock a) so, for cumulative dividend paid = 9% * 50 *39000 *3 = $175,500 * 3 = $526500 non-cumulative = 12% * 100 *6700 = $80400 Remaining dividend = $93100, which would be paid to common shares b) dividend per share Cumulative = 9% * $50 * 3 = $13.50 NonCumulative = 12% * $100 = $12 Common = $93100/ 450,000 = $0.21 c) Issue Price Cumulative = $13.50/0.09 = $150 Non cumulative = $100

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