Question

Use the following information for the Exercises below. [The following information applies to the questions displayed below.) York's outstanding stock consists of 80,000 shares of noncumulative 70% preferred stock with a $5 par value and also 140,000 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. points 2016 total cash dividends 2017 total cash dividends' $ 16,500 26,000 2018 total cash dividends 2019 total cash dividends Print $ 275,000 425,000 Exercise 11-9 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. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.) Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2016 $ 2017 16,500 26,000 275,000 2018 425,000 2019 Totals $ 742,500S

Answer 1

	Par Value Par Preferred Share	Dividend Rate	Dividend Preferred Share	Number of Preferred Share	Preferred Dividend
Annual Preferred Dividend:	5	7%	5 x 7% = 0.35	80,000	80,000 x 0.35 = 28,000
	Total Cash Dividend Paid	Paid to Preferred	Paid to Common	Dividends in Arrears at year-end
2016	16,500	16,500	0	11,500
2017	26,000	26,000	0	13,500
2018	275,000	41,500	233,500	0
2019	425,000	28,000	397,000	0
Totals	$742,500	$112,000	$630,500

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