Requlred Informatlon Use the following information for the E

Requlred Informatlon Use the following information for the Exercises below. IThe following information applies to the questions displayed below. York\'s outstanding stock consists of 60,000 shares of noncumulative7.5% preferred stock with a $5 par value and also 170,000 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 2815 total cash dividends 2016 total cash dividends 2817 total cash dividends 2818 total cash dividends $ 18,78e 20,50 290,930 Exerclse 11-9 Divldends on common and cumulatlve 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 cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your \"Dlvldend per Prefer Share\" nswers t 3 declmal places.) per per Preferred Share Preferred Preferred Dividend Dividend Rate Preferred Share Annual Preferred Dividend: Total Cash Dividend Paid Preferred Paid to Paid to Common Arrears at year-end 2015 2016 2017 2018 Totals 10,700 20,500 290,000 440,000 761,200

Solution

Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: $5.00 7.50% $0.38 60,000 $22,500 Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2015 $10,700 $10,700 2016 20,500 20,500 2017 290,000 22,500 267,500 2018 440,000 22,500 417,500 Total: 761200 76200 685000