Year 1 Year 1 Year 2 Year 3 Year 4 Common Stock Share Price eBook $25 Ask $20 Print $15 $10 References $5 $o Year 1 Year 2 Year 3 Year 4 +ableau TO 1a. Assume that preferred stock is noncumulative and calculate total dividends paid out to each class of shareholders for each of Years 1, 2, 3, and 4 and the years combined. 1b. Assume that preferred stock is cumulative and calculate total dividends paid out to each class of shareholders for each of Years 1, 2, 3, and 4 and the years combined. 10. Would potential investors favor noncumulative or cumulative preferred stock assuming they were priced the same? 2. Why might Adita want to issue preferred stock instead of common stock? 3. Why might an investor prefer Adita's preferred stock over its common stock? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Required 2 Required 3 Ch 11 Tableau-3 Saved Help Save & Exit Submit Check my work 1 Tableau DA 11-3: Mini-Case, Comparing dividends on noncumulative and cumulative preferred stock LO C2 15 points As head of Adita Incorporated, 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. eBook Number of Shares Cash Dividends Distributed by Year $400,000 Ask $350,000 Print Preferred Stock o References $300,000 $250,000 $200,000 Common Stock $150,000 Preferred Stock Dividend Rate $100,000 Preferred Stock 6% Par Value Per Share $50,000 Mc Graw Hill Prey. 1 of 1 Next Return to question 1 SO Year 1 Year 2 Year 3 Year 4 # tableau TO 15 points 1a. Assume that preferred stock is noncumulative and calculate total dividends paid out to each class of shareholders for each of Years 1, 2, 3, and 4 and the years combined. 1b. Assume that preferred stock is cumulative and calculate total dividends paid out to each class of shareholders for each of Years 1, 2,3, and 4 and the years combined. 10. Would potential investors favor noncumulative or cumulative preferred stock assuming they were priced the same? 2. Why might Adita want to issue preferred stock instead of common stock? 3. Why might an investor prefer Adita's preferred stock over its common stock? X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 2 Required 3 Assume that preferred stock is noncumulative and calculate total dividends paid out to each class of shareholders for each of Years 1, 2, 3, and 4 and the years combined. Par Value per Preferred Share Dividend Rate Dividend per Preferred Number of Preferred Shares Preferred Dividend Share Annual Preferred Dividend: 6.0% $ 1.20 84,000 Paid to Preferred Paid to Common 70,000 $ Dividends in Arrears at year-end $ $ 20.00 Total Cash Dividend Paid $ 25,000 30,000 210,000 360,000 625,000 25,000 $ 30.000 Year 1 Year 2 Year 3 Year 4 Totals 0 0 0 0 84,000 139,000 276.000 $ 276.000 Return to question Year 1 Year 2 Year 3 Year 4 # tableau co TO 15 points 1a. Assume that preferred stock is noncumulative and calculate total dividends paid out to each class of shareholders for each of Years 1,2,3, and 4 and the years combined. 1b. Assume that preferred stock is cumulative and calculate total dividends paid out to each class of shareholders for each of Years 1, 2,3, and 4 and the years combined. 1c. Would potential investors favor noncumulative or cumulative preferred stock assuming they were priced the same? 2. Why might Adita want to issue preferred stock instead of common stock? 3. Why might an investor prefer Adita's preferred stock over its common stock? X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Required 2 Required 3 Assume that preferred stock is cumulative and calculate total dividends paid out to each class of shareholders for each of Years 1, 2, 3, and 4 and the years combined. Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: 21,000 X Year 1 $ 5.00 Total Cash Dividend Paid $ 25,000 30,000 210,000 360,000 $ 625,000 6.0% $ 0.30 X 70,000 $ Dividends Paid to Paid to Common in Arrears Preferred at year-end 9,100 X $ 0$ 11,900 X 19,000 X 0 2,000 X 21,000 X 274,000 X 0 21,000 424,000 X 0 70,100 $ 698,000 Year 2 Year 3 Year 4 Totals DALLA DEC