I am not understanding how to calculate the following problem..Perez Corporation

Question

I am not understanding how to calculate the following problem..Perez Corporation was organized on January 1, 2009. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2009, $6,000, 2010, $12,000, and 2011, $28,000. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and not cumulative. I am not looking for the answer, I am looking for an understanding of the calculation.

Explanation / Answer

Preferred Stock 2009 $6000 2010 $7000 2011 $7000 Common Stock 2009 $0 2010 $5000 2011 $21000 8% 2009 $6000 2010 $8000 2011 $8000 Common 2009 $0 2010 $4000 2011 $20000

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