Required information Use the following information for the E

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below] York\'s outstanding stock consists of 85,000 shares of noncumulative 6 0% preferred stock with a $5 par value and also 150,000 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 2018 total cash dividends s 13,980 23,500 280,800 430,000 Exercise 11-9 Dividends on common and cumulative 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 is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your \"Dividend per Preferred Share\" answers to 3 decimal places.) Preferred Dividend s in Paid to Preferred Total Cash Paid to Arrears at 2015 2016 2017 2018 Totals Dividend Paid 13,900 23.500 280,000 430.000 747.400

Solution

Assuming preferred stock is cumulative: Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: $5.00 6.00% $0.30 85,000 $25,500 Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2015 $13,900 $13,900 $0 $11,600 2016 23,500 23,500 $0 13,600 2017 280,000 39,100 $240,900 2018 430,000 25,500 $404,500 Totals 747400 102000 645400