Question

York's outstanding stock consists of 90,000 shares of noncumulative 6.5% preferred stock with a $5 par value and also 100,000 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. $ Year 1 total cash dividends Year 2 total cash dividends Year 3 total cash dividends Year 4 total cash dividends 18,100 27,200 255,000 405,000 Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. (Round your "Dividend per Preferred Share" answer to 3 decimal places.) Annual Preferred Dividend Answer is complete but not entirely correct. Par Value Dividend Number per Dividend per of Preferred Preferred Rate Preferred Preferred Dividend Share Share 5.00 6.5% $ 0.325 9 0,000 $ 29,250 Dividends Total Cash Paid to Paid to in Arrears Dividend Preferred Common at year Pald end OS 18,100 $ 18,100 $ 0 27.200 27,200 0 X 255,000 255,000 375.750 20,250 405,000 $ 329,550 $375,750 12 of 9!!! Next > Prey Year 1 Year 2 Year 3 Year 4 Total: 705,300

Answer 1

			Par value	Dividend	Dividend	Number of	Preferred
			per	Rate	per	Preferred	Dividend
			Preferred		Preferred	Shares
			Share		Share
Annual Preferred Dividends			5	6.50%	0.325	90,000	29250
			total	paid to	paid to	Dividend in
			Cash	preferred	common	Arreat at
			div paid			yr end
year 1			18,100	18,100	0	0
year 2			27,200	27,200	0	0
year 3			255,000	29,250	225,750	0
year 4			405,000	29250	375,750	0
total			705,300	103,800	601,500	0