ckboard Learn M McGraw-Hill Student Center G ebay a YouTube ows whet is correct

Question

ckboard Learn M McGraw-Hill Student Center G ebay a YouTube ows whet is correct or incorrect for the work you have completed so far. It does not Required information The following information applies to the questions displayed below York's outstanding stock consists of75000 shares of noncumuletve 6 0% preferred stock with a $5 par value and also 240,000 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 10 S 12,100 2016 total cash dividends 228,800 378,000 2018 total cash dividends Determine the amount of dividends paid each year to each of the two classes of st 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.) ers assuming that the preferred stock is 3 Answer is complete but not entirely correct. Number of Preferred Dividend 6.0% s 0300 75,000 os 22.5000 Paid to Preferred at year-end 12.100 197 500

Explanation / Answer

Year total Cash Dividend Paid (A) Paid to Preferred Stock (B) Paid to Common Shares (A -B) Dividend in the arreas at the year end Remarks 2015 $               12,100.00 $                                     12,100.00 $                          -   $           10,400.00 No Balance for Common Shares 2016 $               20,500.00 $                                     20,500.00 $                          -   $           12,400.00 No Balance for Common Shares 2017 $            2,20,000.00 $                                     34,900.00 $       1,85,100.00 $                          -   2018 $            3,70,000.00 $                                     22,500.00 $       3,47,500.00 $                          -   TOTAL $            6,22,600.00 $                                     90,000.00 $       5,32,600.00 $           22,800.00 Note: Preferred stock are non-cumulative stock so once not paid then dividend        no paid in the year will not carry forward to next year so dividend arrears will be Zero WORKING NOTE: Calculation of preferred stock dividend payable per year Value of the preferred stock = (75,000 Shares X $ 5 Per share) = $             3,75,000 Dividend payable per year is 6% = $                 22,500 Dividend per preferred shares = $ 5 X 6% = $ 0.3000

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