Question

1/ The following information applies to the questions displayed below.]

York’s outstanding stock consists of 85,000 shares of noncumulative 6.0% preferred stock with a $5 par value and also 150,000 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	$	13,900
2016 total cash dividends		23,500
2017 total cash dividends		280,000
2018 total cash dividends		430,000

Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)

	Par Value per Preferred Share	Dividend Rate	Dividend per Preferred Share	Number of Preferred Shares	Preferred Dividend
Annual Preferred Dividend:
	Total Cash Dividend Paid	Paid to Preferred	Paid to Common	Dividends in Arrears at year-end
2015	$13,900
2016	23,500
2017	280,000
2018	430,000
Total:	$747,400

2/

Company	Annual Cash Dividend per Share				Market Value per Share
1	$	19.00			$	250.00
2		16.00				181.82
3		14.70				141.35
4		1.70				127.60

Compute the dividend yield for each of these four separate companies.

Dividend Yield
Company	Choose Numerator:	/	Choose Denominator:	=	Dividend Yield
		/		=	Dividend yield
1		/		=
2		/		=
3		/		=
4		/		=

Answer 1

1		Par Value per Preferred Share		Dividend Rate		Dividend per preferred share	No. of Preferred share	Preferred Dividend
	Annual Preferred Dividend:	$5		6.00%		$0.30	85,000	$25,500
		Total Cash Dividend Paid		Paid to preferred		Paid to Common	Dividend in Arrears at year end
	2015	$13,900		$13,900		$0	$11,600
	2016	$23,500		$23,500		$0	$13,600
	2017	$280,000		$39,100		$240,900	$0
	2018	$430,000		$25,500		$404,500	$0
	Total	$747,400		$102,000		$645,400
2	Company	Choose Numerator	/	Choose Denominator	=	Dividend Yield
		Dividend per share	/	Market value per share	=	Dividend Yield
	1	$19.00	/	$250.00	=	7.60%
	2	$16.00	/	$181.82	=	8.80%
	3	$14.70	/	$141.35	=	10.40%
	4	$1.70	/	$127.60	=	1.33%