Question

Return to qui 12 Required information Use the following information for the Exercises below. The following information applies to the questions displayed below! York's outstanding stock consists of 90,000 shares of noncumulative 6.5% preferred stock with a $5 par value and also 100,000 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: 2015 total cash dividends 2016 total cash dividends 2017 total cash dividends 2018 total cash dividends $ 1,100 27,200 255.000 405,000 Exercise 13-8 Dividends on common and noncumulative preferred stock LO C2 Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places)

Answer 1

Solution:

	Par value per prefered share	Dividend Rate	Dividend per preferred share	Number of preferred shares	Preferred dividend
Annual preferred dividend:	$5.00	6.5%	$0.325	90000	$29,250.00
	Total cash dividend paid	Paid to preferred	Paid to common	Dividends in Arrears at year end
2015	$18,100.00	$18,100.00	$0.00	$0.00
2016	$27,200.00	$27,200.00	$0.00	$0.00
2017	$255,000.00	$29,250.00	$225,750.00	$0.00
2018	$405,000.00	$29,250.00	$375,750.00	$0.00
Total	$705,300.00	$103,800.00	$601,500.00