Required information The following information applies to th

Required information [The following information applies to the questions displayed belowj York\'s outstanding stock consists of 70,000 shares of noncumulative 8.5% preferred stock with a $5 par value and also 290,000 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 2015 total cash dividends 2016 total cash dividends 2017 total cash dividends 2018 total cash dividends $ 18,800 27,700 245,000 395,000 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.) Par Value per Number o Preferred Shares Dividend per Preferred Dividend Preferred Dividend Rate Preferred Share Annual Preferred Dividend: 5.00 8.5% $ 0.425 70,000 $ 29,750 Dividends in Arrears at year-end Paid to Paid to Commorn Total Cash Dividend Paid Preferred 2015 2016 2017 2018 Totals 18,800 $ 27,700 29,750 29,750 29,750 29,750 18,800 $ 215,250 365,250 $686,500$ 106,000$ 580,500 27,700 245,000 395,000

Solution

Dividend distribution :

	Par value per perferred share	Dividend rate	Dividend per preferred share	Number of preferred share	Preferred dividend
Annual preferrred dividend	5	8.5%	0.425	70000	29750
	Total cash dividend paid	Paid to preferred	Paid to common	Dividend in arrears at year end
2015	18800	18800	0	10950
2016	27700	27700	0	2050
2017	245000	42750	202250	0
2018	395000	29750	365250	0
Total	686500	119000	567500	0