Aportionofthestockholders'equitysectionfromthebalancesheetofWalland

Corporationappearsasfollows.Noticethatthecompanyhastwoclassesofpreferred

stockwithdifferentfeatures, in addition to common stock.

Dividends: Preferred and Common

Stockholders' equity:

Preferred stock, 8% cumulative, $50 par, 40,000 sharesauthorized, issued, and outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000

Preferred stock, 12% noncumulative, $100 par, 8,000shares authorized, issued, and outstanding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .800,000

Common stock, $5 par, 400,000 shares authorized, issued,and outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,000,000

Total paid-in capital. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .$4,800,000

AssumethatallthestockwasissuedonJanuary1andthatnodividendswerepaidduringthefirsttwoyearsofoperation.Duringthethirdyear,WallandCorporationpaidtotalcashdividends of $736,000.

a. Compute the amount of cash dividends paid during the third year to each of the three classes of stock.

b. Computethedividendspaidpershareduringthethirdyearforeachofthethree

classesofstock.

c. What was the average issue price of each type of preferred stock?