2015 total cash dividends $ 11,500 2016 total cash dividends 20,700 2017 total c

Question

2015 total cash dividends $ 11,500 2016 total cash dividends 20,700 2017 total cash dividends 260,000 2018 total cash dividends 410,000 2015 tota cash dividends 2016 total cash dividends 2017 total cash dividends 2018 total cash dividends $ 11,500 20,700 260,000 410,000 Exercise 11-9 Dividends on common and cumulative preferred stock LO C2 Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.) Par Value per Preferred Share Number of Preferred Shares Dividend per Preferred Dividend Dividend RatePreferred Share Annual Preferred Dividend: 5.00 7.0% $ 0.350 65,000 22,750 Dividends in Arrears at ear-end Paid to Paid to Common Total Cash Dividend Paid Preferred 11,500 20,700 11,500 $ 2015 2016 2017 2018 Totals 20,700 260,000 410,000 387,250 $702,200 54,950$387,250 22,750

Explanation / Answer

Dividend distribution when shares are cumlative :

Dividend distribution when share are non cumlative :

Par value per preferred shares dividend rate Dividend per preferred share No of shares Preferred dividend Annual preferred dividend 5 7% 0.35 65000 22750 Total cash dividend paid Preferred dividend common stock dividend dividend in arrear at year end 2015 11500 11500 11250 2016 20700 20700 13300 2017 260000 36050 223950 2018 410000 22750 387250 Total 702200 91000 611200

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