Question
As head of Adita, Inc., potential investors are asking questions about the | company's dividend payment history. The investors are also curious how dividend
As head of Adita, Inc., potential investors are asking questions about the | company's dividend payment history. The investors are also curious how dividend payments differed for common and preferred shareholders. To help answer their questions, the following Tableau Dashboard is provided. Cash Dividends Distributed by Year $400,000 Number of Shares $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $25 $20 $15 $10 Preferred Stock Common Stock Preferred Stock Dividend Rate Preferred Stock 6% Par Value Per Share Common Stock $0 Preferred Stock Year 1 Year 2 Year 3 Year 4 Common Stock Share Price $5 50 Year 1 Year 2 Year 3 Year 4 $0.01 $20.00 I 1. What is the total cash dividends paid out for Years 1, 2, 3, and 4 combined? 2. Assume that preferred share is noncumulative and compute the Year 4 cash dividends paid to (a) preferred shareholders and (b) common shareholders.
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