Question

Check my work mode : This shows what is correct or incorrect for the work you have completo 4 York's outstanding stock consists of 75,000 shares of noncumulative 80% preferred stock with a $5 par value and also 130,000 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. Part 2 of 2 $ Year 1 total cash dividends Year 2 total cash dividends Year total cash dividends Year 4 total cash dividends 18,600 28.000 270.000 420.000 214 Exercise 11-11 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 (Round your "Dividend per Preferred Share" answer to 3 decimal places.) Answer is not complete. Par Value Dividend Dividend Rato Number of Preferred Preferred Preferred Dividend Annual Preferred Dividend: Preferred Share 0.400 8.0% $ 30,000 75,000 Divlands Pold to Preferred Paid to Common yearend Yeart 5.00 Total Cash Dividend Paid 13 500 28.000 270.000 20 000 736 600 5 20 000 Year 2 30 000 000S S 32000 12 000

Answer 1

Solution:

	Par Value per Preferred share	Dividend Rate	Dividend per preferred share	Number of preferred shares	Preferred Dividend
Annual Preferred Dividend	$5	8.00%	$0.400	75000	$30,000
	Total Cash dividend Paid	Paid to Preferred	Paid to common	Dividend in arrears at year-end
2015	$18,600	$18,600	$0	$11,400
2016	$28,000	$28,000	$0	$13,400
2017	$2,70,000	$43,400	$2,26,600	$0
2018	$4,20,000	$30,000	$3,90,000	$0
Totals	$7,36,600	$1,20,000	$6,16,600	$24,800