Preferred dividends Jane Motors has an outstanding issue of preferred stock with a

£20 par value and an 6% annual dividend.

a. What is the annual dividend amount paid? If it is paid quarterly, how much will be paid each quarter?

b. Assume the preferred stock is noncumulative and the board of directors has decided to postpone the preferred dividend for the first three quarters of the year, how much must be paid to preferred stockholders in the fourth quarter before dividends are paid to common stockholders?

c. Assume the preferred stock is cumulative and the board of directors has decided to postpone the preferred dividend for the first three quarters of the year, how much must be paid to preferred stockholders in the fourth quarter before dividends are paid to common stockholders?