Dividend Distribution

Rydon Corporation began business on March 1 Year 1. At that time, it issued 20,000 shares of $60 par value, seven percent cumulative preferred stock and 100,000 shares of $5 par value common stock. Through the end of Year 3, there had been no change in the number of preferred and common shares outstanding.

Required

a. Assume that Rydon declared dividends of $0 in Year 1, $180,000 in Year 2, and $205,000 in Year 3. Calculate the total dividends and the dividends per share paid to each class of stock in Year 1, Year 2, and Year 3. Round to two decimal places.

Year	Preferred Stock	Common Stock	Preferred per share	Common per share
Year 1	Answer	Answer	Answer	Answer
Year 2	Answer	Answer	Answer	Answer
Year 3	Answer	Answer	Answer	Answer

b. Assume that Rydon declared dividends of $0 in Year 1, $84,000 in Year 2, and $180,000 in Year 3. Calculate the total dividends and the dividends per share paid to each class of stock in Year 1, Year 2, and Year 3. Round to two decimal places.

Year	Preferred Stock	Common Stock	Preferred per share	Common per share
Year 1	Answer	Answer	Answer	Answer
Year 2	Answer	Answer	Answer	Answer
Year 3	Answer	Answer	Answer	Answer