Question

Use the following information for the Exercises below. The following information applies to the questions displayed below.] York's outstanding stock consists of 60,000 shares of noncumulative 8.0% preferred stock with a $5 par value and also 280,000 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. Year 1 total cash dividends $ 13, 200 Year 2 total cash dividends 22,000 Year 3 total cash dividends 240,000 Year 4 total cash dividends 390,000 Exercise 11-11 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. (Round your "Dividend per Preferred Share" answer to 3 decimal places.)

Answer 1

	Par value per preffered share	Dividend rate	Dividend per preferred share	Number of preferred shares	Preferred Dividend
Annual preferred dividend	$5	8.00%	$0.40	60000	$24,000.00
	Total cash dividend paid	Paid to preferred	Paid to common	Dividend arrears at the year end
year 1	13200	$        13,200			$10,800.00
year 2	22000	$        22,000			$12,800.00
year 3	240000	$36,800	$203,200
year 4	390000	$24,000	$366,000