Question

Problem 15-10 Martinez Corp. has 5,500 preferred shares outstanding ($2.50 dividend), which were issued for $160,000, and 40,000 common shares, which were issued for $510,000. The following schedule shows the amount of dividends paid out over the past four years. Allocate the dividends to each type of share under assumptions (a) and (b). Express your answers in per share amounts and using the format that is shown. (Round intermediate calculations to 5 decimal places, e.g. 0.15647 and final answers to 2 decimal places, e.g. 52.75. Do not leave any answer field blank. Enter o for amounts.) Assumptions (b) a Preferred, non-cumulative, and non-participating Preferred Common Preferred, cumulative, and fully participating Preferred Common Year Paid-out __ 2017 $ 12,100 ___ + 2018 + + $ 28,000 $ 70,000 2019 + + 2020 $136,000 + +

Answer 1

		Par value per	Divdiend	Dividend per	Number of	Preferred Dividend
		Preferred share	Rate	Preferred share	Preferred share	for 1 year
	Calculation of Preferred Dividend	NA	NA	$2.50	5,500	$13,750
		(a)Preferred,non-cumulative and non-participating		(a)Preferred,cumulative and fully participating
	Total cash dividend paid	Paid to preferred	Paid to common	Paid to preferred	Paid to common	Dividend in arrears
2017	$12,100	$12,100	0	$12,100	$0	$1,650
2018	$28,000	$13,750	$14,250	$15,400	$12,600	$0
2019	$70,000	$13,750	$56,250	$13,750	$56,250	$0
2020	$1,36,000	$13,750	$1,22,250	$13,750	$1,22,250	$0
Totals