Question

York’s outstanding stock consists of 70,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 120,000 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 $15,000

2016 total cash dividends 24,200

2017 total cash dividends 265,000

2018 total cash dividends 415,000

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	dividends	dividends per preferred shar	number of preferred shares	preferred dividends
annual preferred dividend
	total cash dividends paid	paid to preferred	paid to common	dividends in arrears at year-end
2015	$     15,000
2016	24,200
2017	265,000
2018	415,000
total:	$      719,200

Answer 1

	Par Value per Preferred Share	Dividend rate	Dividend per Preferred Share	No. of Preferred Shares	Preferred Dividend
Annual Preferred Dividend:	$                             5	7.50%	$                   0.375	70,000	$            26,250.00
	Total Cash Dividend paid	Paid to Preferred	Paid to Common	Dividends in Arrears at Year end
2015	$            15,000.00	$           15,000.00	$                          -	$          11,250.00 or $ 0 since the stock is non cumulative
2016	$            24,200.00	$           24,200.00	$                          -	$          13,300.00 OR $ 0 since the stock is non cumulative
2017	$          265,000.00	$           26,250.00	$        238,750.00	$                          -
2018	$          415,000.00	$           26,250.00	$        388,750.00	$                          -
TOTAL	$          719,200.00	$           91,700.00	$        627,500.00	$                          -