The Mark Company has $250,000 to pay dividends. The company has 25,000 shares of 8%, $50 par, preferred stock and 100,000 shares of $5 par common stock outstanding. The common stock is currently selling for $43 per share and the preferred stock is selling for $95 per share on the stock market.

Required:

Determine the amount of dividends to be paid for each class of stock in each of the independent situations.

1. Preferred stock is nonparticipating and cumulative; dividends are in the arrears for 1 year at the beginning of the year.

Mark Company
	Preferred	Common
Dividends in arrears
Current preferred dividend
Remainder to common
Total

2. Preferred stock is fully participating and cumulative. When required, round your answers to the nearest dollar.

Mark Company
	Preferred	Common
Current Preferred dividends
Common Proportional share
Remainder shared
Total

3. Preferred stock is nonparticipating and noncumulative.

Mark Company
	Preferred	Common
Preferred dividend
Remainder to common
Total

4. Compute the dividend yield on the preferred stock and common stock for number 3. Round your answers to one decimal place.

	Dividend Yield
Preferred stock
Common stock