Wade’s outstanding stock consists of 43,000 shares of noncumulative 6.20% prefer

Question

Wade’s outstanding stock consists of 43,000 shares of noncumulative 6.20% preferred stock with a $10 par value and also 107,500 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.)

    

Wade’s outstanding stock consists of 43,000 shares of noncumulative 6.20% preferred stock with a $10 par value and also 107,500 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.

Explanation / Answer

Preferred Stock:

43,000 shares * 10 = $430,000

Dividend on Preferred stock:

430,000 *7/100 = $30,100 (non-cumulative)

YEAR PREFERRED SHARES COMMON STOCK TOTAL DIVIDENDS 2011 NIL 16000 16000 2012 NIL 24000 24000 2013 30100 59900 90000 2014 30100 162900 193000 TOTAL 60200 262800 323000

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