Wade\'s outstanding stock consists of 55.000 shares of cumulative 9.50% preferre
ID: 2764437 • Letter: W
Question
Wade's outstanding stock consists of 55.000 shares of cumulative 9.50% preferred stock with a $10 par value and also 137.500 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends. Determine the amount of dividends paid each year to each of the two classes of stockholders, preferred and common. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Determine the total dividends paid to each class for the four years combined. (Omit the -"$" sign in your response.)Explanation / Answer
Where current prefered dividend = Par value*cumulative shares outstanding*dividend %age
unpaid prefered dividend = current prefered dividend+previous prefered dividend-cash dividend
Common equity dividend = cash dividend after prefered dividends are paid out
Year Total dividend Current Prefered dividend Current +unpaid prefered dividend Prefered dividend paid Unpaid prefered dividend Common stock dividend 2011 42000 52250 52250 42000 10250 0 2012 47000 52250 62500 47000 15500 0 2013 87250 52250 67750 67750 0 19500 2014 122250 52250 52250 52250 0 70000 Total= 209000 89500Related Questions
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