York’s outstanding stock consists of 50,000 shares of cumulative 7.50% preferred
ID: 2579375 • Letter: Y
Question
York’s outstanding stock consists of 50,000 shares of cumulative 7.50% preferred stock with a $10 par value and also 125,000 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 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 2 decimal places.)
York’s outstanding stock consists of 50,000 shares of cumulative 7.50% preferred stock with a $10 par value and also 125,000 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.
Explanation / Answer
Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: 10 7.50% 0.75 50,000 37500 Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2015 30000 30000 7500 2016 31,500 31,500 13,500 2017 77,500 51,000 26,500 2018 1,17,500 37,500 80,000 Totals 256500 150000 106500
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