Question

Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with a $100 par value and 10,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

	Dividend Declared
year 1	$	2,700
year 2	$	7,400
year 3	$	35,500

The total amount of dividends paid to preferred and common shareholders over the three-year period is:

Answer 1

Non Cumulative Preferred Dividend 6800 Par Value per Dividend per Number of preferred share Dividend Rate preferred share preffered shares | Annual Preferred Dividend: 100.00 4.0% 4.000 1700 Total Cash Paid to Paid to common Dividends in Dividend paid preferred shareholders Arrears at year end Year 1 2700 2700 Year 2 7400 6800 600 Year 3 35500 6800 28700 Total 45600 16300 29300

Total amount of Dividend paid to preferred is $16,300

Total amount of Dividend paid to Common shareholders is $29,300