Answered step by step
Verified Expert Solution
Question
1 Approved Answer
York's outstanding stock consists of 90,000 shares of noncumulative 7.0% preferred stock with a $5 par value and also 160,000 shares of common stock with
York's outstanding stock consists of 90,000 shares of noncumulative 7.0% preferred stock with a $5 par value and also 160,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: $ 2015 total cash dividends 2016 total cash dividends 2017 total cash dividends 2018 total cash dividends 19,800 29,500 285,000 435,000 Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.) Dividend Rate Par Value per Preferred Share $ 5.00 Dividend per Preferred Share $ 0.350 Preferred Dividend Annual Preferred Dividend: 7.0% Number of Preferred Shares 90,000 Dividends in Arrears at year-end $ 31,500 Total Cash Dividend Paid Paid to Preferred Paid to Common $ $ 19,800 29,500 0 2015 2016 2017 2018 Totals 19,800 29,500 285,000 435,000 769.300 403,500 403,500 $ 49,300 $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started