Question

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 7.5% preferred stock with a $5 par value and also 270,000 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 $ 23,000 31,700 235,000 385,000 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 is complete but not entirely correct. Par Value Dividend Rate Preferred Dividend Preferred Share 5.00 Dividend per Preferred Share $ 0.375 Number of Preferred Shares 90,000 Annual Preferred Dividend 7.5% $ 33,750

Answer 1

Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend 5.00 Total Cash Dividend Paid 90000 $ 33,750 Dividends in arrears at Year end $ 2015 2016 2017 2018 Total 7.5% $ 0.375 Paid to Paid to common Preferred stock holders stock holders $ 23,000 $ - $ 31,700 $ $ 33,750 $ 201,250 $ 33,750S 351,250 $ 122,200 $ 552,500 23,000 31,700 235,000 385,000 674,700 Working Notes: Cumulative Preferred stock holders can claim the arrears of Dividends when ever company will have profits in next coming yaers, Cumulative preferred stock holders can have the right to get back their arrears of dividends Non Cumulative Preferred stock holders can't claim the arrears of dividends. They have no right to get back their arrears of dividends in next coming years when ever the company have profits.