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York’s outstanding stock consists of 28,000 shares of noncumulative 7.20% prefer

ID: 2470681 • Letter: Y

Question

York’s outstanding stock consists of 28,000 shares of noncumulative 7.20% preferred stock with a $10 par value and also 70,000 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 "Dividend Rate (%)" to 1 decimal place and "Dividend per Preferred Share" to 2 decimal places.)

Total 318,160

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 "Dividend Rate (%)" to 1 decimal place and "Dividend per Preferred Share" to 2 decimal places.)

Explanation / Answer

Preferrence shares 28000 par value 10 total par value 280000 Dividend 7.2% 20160 Common stock 70000 par value 1 Total par value 70000 2015 2016 2017 2018 total Dividend paid 16000 18160 90000 194000 318160 Preferrence dividend 16000 18160 20160 20160 74480 % of preferred dividend 100.00% 100.00% 22.40% 10.39% 23.41% Common stock dividend 0 0 69840 173840 243680 % of common dividend 0.00% 0.00% 77.60% 89.61% 76.59%