Question

Green Planet Corp. has (a) 4,500 shares of noncumulative 10% preferred stock with a $2 par value and (b) 16,300 shares of common stock with a $0.01 par value. During its first two years of operation, Green Planet declared and paid the following total cash dividends. Compute the dividends paid each year to each of the two classes of stockholders: preferred and common. Year 1 total cash dividends Year 2 total cash dividends $ 790 $1,630 Noncumulative Preferred Common Year 1 Year 2

Answer 1

Non Cummulative Preferred Common Year 1 $ 790 $ Year 2 $ 1,010 $ 620 Note : Year 1 Preferred Dividend to be paid Less : Preferred dividend paid Arrears $ $ $ 900 (790) 110 Year 2 Preferred Dividend to be paid Arrears Total $ $ $ 900 110 1,010 Common Dividends : 1630-1010 $ 620 Note : Do Comment For Any Further Assistance