Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling for $20 per share.

1. Determine the amount of dividends to be paid to each class of shareholder for each of the following independent assumptions:

a. Preferred stock is nonparticipating and noncumulative.

b. Preferred stock is nonparticipating and cumulative. Preferred dividends are 2 years in arrears at the beginning of the year.

c. Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year

2. For 1(a), compute the dividend yield on the preferred stock and the common stock.

Please see attached spreadsheet.

Ch. 16 - E2, LO1 - ACG2110 (2e) Name: 1. Enter the appropriate account names and amounts in the shaded cells. a. Preferred Common Preferred dividend Remainder to common Total b. Dividends in arrears Current preferred dividends Remainder to common Total c. Dividends in arrears Current preferred dividends Common proportional share Remainder shared Total 2. Compute the dividend yield below for preferred and common stock: Show Formula below Dividend yield Preferred Common = * Note: Show excel computations* *