York’s outstanding stock consists of 28,000 shares of noncumulative 7.00% prefer

Question

York’s outstanding stock consists of 28,000 shares of noncumulative 7.00% 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: 2015 $ 16,000 2016 18,600 2017 90,000 2018 195,000 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 your "Dividend per Preferred Share" answers to 2 decimal places.)

Explanation / Answer

Ans) York’s outstanding stock Two Classes of Stocks Stock A 28000 Preferred stock which received 7% dividend Stock B 70000 Common Stock Company must declare first its dividend to Preference shareholders Dividend Stock A $      19,600.00 every year During first year of operation company declared and paid the following cash dividends Dividend declared and paid in cash Class A Class A missed out which we redeem next year Class B 2015 $      16,000.00 $ 16,000.00 $                 3,600.00 $                   -   2016 $      18,600.00 $ 18,600.00 $                 4,600.00 $                   -   2017 $      90,000.00 $ 24,200.00 $    65,800.00 2018 $   197,000.00 $ 19,600.00 $ 177,400.00 Total Dividend Paid $   321,600.00 $ 78,400.00 $ 243,200.00

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.