out the Year 1 0 stock and 14800 shares of 29 xe common stoc

out the Year 1: $0 stock and 14,800 shares of $29 xe common stock, what would be the total d to holders of common and preferred stock? (Complete all answer boxes. Enter a \"0 for any zero balances ) Dividend to

Solution

Since the dividend is cumulative in Preferred shares, therefore any short payment will be carried forward.

Company have to pay 2900 x 94 x 11% = $29,986

Accordingly, payments will be as follows

Year	Dividend to Preferred Stock	Dividend to Common Stock	Carried Forward
1	$                  -	$                 -	$ 29,986.00
2	$   26,000.00	$                 -	$ 33,972.00
3	$   63,958.00	$ 31,042.00