Question

2. (10 points) At the start of 2010, Apollo Corporation has 20,000 outstanding shares of preferred stock, each with a $22 par value and a cumulative 6% annual dividend. The company also has 32,000 shares of common stock outstanding with par value of $28 per share. The company pays total cash dividends as follows. 2010 $0 2011 $ 23,000 2012 $ 19,000 2013 $ 88,000 2014 $ 163,000 Calculate the dividends paid to each category of stockholders, in total and per share.

Answer 1

computation of douidends paid to each category of stockholders an total and per share - 10010 2011 2012 2013 2014 Total dividend paid $0 $23000/419000 $88000 & 163000. a) dividend paid to preferred stockholds $0 23000 (19000 72001 66400) Dividend paid to - common stockholderso o o $50800 $136600 b) shares of preferred gopoo 20.000 20.000 20pool 20.000 Dividend per share of preferred stock $0 $1.15 $0.95 $ 1.86 $ 1.32 stock d) Namber of shared of commonstock 32000 32000 32000 32000 32600 Dividend per share of common stock $0 $0 $0 $1.59 $4.27 Note :- dividend to preferred stock holders 20,000x $ 22X6. $26400 =