Dividends Andrews Company has $110,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 20,000 shares of $10 par common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling for $20 per share. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Required: 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. Andrews Company Schedule of dividends to be paid Preferred dividend Remainder to common Preferred Common 20,000 90,000 20,000 Total 90,000 b. Preferred stock is nonparticipating and cumulative. Preferred dividends are 2 years in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears 40,000 Current preferred 20,000 dividend Remainder to common 50,000 Total 60,000 50,000 c. Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears 20,000 Current preferred dividend 20,000 Common proportional 20,000 share Remainder shared 90,000 x Total 40,000 X 20,000 x 2. For 1(a), compute the dividend yield on the preferred stock and the common stock. If required, round your answers to one decimal place. Dividend yield Preferred stock 8 % Common stock 22.5 % Feedback