Question

ng the first tree years of operatio Sweet Company's outstanding stock consists of t900 shares of cur ulati e 5% preferred stock with a soo par value and the corporation declared and paid the following total cash dividends 900 shares of common stock with a SO par vate s 2,900 Year 2 %6,900 Year 3$36,500 the total amount of dividends paid to preferred and common shareholders over the three-year period is $28500 prteret $17800 common 15,400prelened $29.900 commom $9.500 preferred 536 800 common 521,900 prefeed $24 400 common 3000 pree 527 300common

Answer 1

Answer: $28,500 preferred, $17,800 common

Working:

	Par Value per Preferred Share	Dividend Rate	Dividend per Preferred Share	Number of Preferred Shares	Preferred Dividend
Annual Preferred Dividend:	$100.00	5.00%	$5.00	1900	$9,500
	Total Cash Dividend Paid	Paid to Preferred	Paid to Common	Dividends in Arrears at year-end
Year 1	2900	2900	0	6600
Year 2	6900	6900	0	9200
Year 3	36500	18700	17800	0
Total $	46300	28500	17800	0