The start of 2010, Dublin Corporation has 21,000 outstanding shares of preferred stock, each with a...

The start of 2010, Dublin Corporation has 21,000 outstanding shares of preferred stock, each with a $32 par value and a cumulative 9% annual dividend. The company also has 32,000 shares of common stock outstanding with par value of $28 per share. At the beginning of 2012, the company has a 2-for-1 common stock split. The company pays total cash dividends as follows.

2008 $0

2009 $ 23,000

2010 $ 19,000

2011 $ 88,000

2012 $ 163,000

Calculate the dividends paid to each category of stockholders, in total and per share.

Expert Solution

All working forms part of the answer
Working

	Par Value per Preferred Share	Dividend rate	Dividend per Preferred Share	No. of Preferred Shares	Preferred Dividend
*Annual Preferred Dividend:*	$ 32	9.00%	$ 2.880	21,000	$ 60,480.00
	Total Cash Dividend paid	Paid to Preferred	Paid to Common	Dividends in Arrears at Year end
2009	$ 23,000.00	$ 23,000.00	$ -	$ 37,480.00
2010	$ 19,000.00	$ 19,000.00	$ -	$ 78,960.00
2011	$ 88,000.00	$ 88,000.00	$ -	$ 51,440.00
2012	$ 163,000.00	$ 111,920.00	$ 51,080.00	$ -
TOTAL	$ 293,000.00	$ 241,920.00	$ 51,080.00	$ -

Answers

	2009	2010	2011	2012
*Preferred Dividend:*
Total	$ 23,000.00	$ 19,000.00	$ 88,000.00	$ 111,920.00
Dividend per share [Total / 21000 shares]	$ 1.10	$ 0.90	$ 4.19	$ 5.33

*Common Stock Dividend:*
Total	$ -	$ -	$ -	$ 51,080.00
Dividend per share	$ -	$ -	$ -	$ 0.80 [51080 / 64000 shares]

ekkarill92 answered 1 year ago

Bluefield Corporation has 6 million shares of common stock outstanding, 600,000 shares of preferred stock that...

Bluefield Corporation has 6 million shares of common stock outstanding, 600,000 shares of preferred stock that pays an annual dividend of $8, and 200,000 bonds with a 10 percent coupon (semiannual interest) and 20 years to maturity. At present, the common stock is selling for $50 per share, the bonds are selling for $950.62 per $1,000 of face value, and the preferred stock is selling at $74 per share. The estimated required rate of return on the market is 13...

Zurich Corporation has 21,000 shares of $30 par common stock outstanding. On June 8, Zurich Corporation...

Zurich Corporation has 21,000 shares of $30 par common stock outstanding. On June 8, Zurich Corporation declared a 2% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $45 per share on June 8. Journalize the entries required on June 8, July 13, and August 12. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select...

Titan Mining Corporation has 9.7 million shares of common stock outstanding, 410,000 shares of preferred stock...

Titan Mining Corporation has 9.7 million shares of common stock outstanding, 410,000 shares of preferred stock outstanding, and 215,000 bonds outstanding with a par value of $1,000 each. The common stock currently sells for $45 per share and has a beta of 1.35, the preferred stock currently sells for $95 per share, and the bonds sell for 116 percent of par. The cost of common equity is 16.48 percent, preferred equity is 4.21 percent, and the debt's yield to maturity...

Titan Mining Corporation has 8.9 million shares of common stock outstanding, 330,000 shares of preferred stock...

Titan Mining Corporation has 8.9 million shares of common stock outstanding, 330,000 shares of preferred stock outstanding, and 175,000 bonds outstanding with a par value of $1,000 each. The common stock currently sells for $37 per share and has a beta of 1.45, the preferred stock currently sells for $87 per share, and the bonds sell for 118 percent of par. A. The cost of common equity is 15.17 percent, preferred equity is 5.75 percent, and the debt's yield to...

Pealand Company has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding....

Pealand Company has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $1.00 par value. The preffered stock has a $100 par value, a 5% dividend rate, and is noncumulative. On October 31, 2015, the company declares dividends of $0.25 per share for common. Provide the journal entry for the declaration of dividends.

ABC Corporation has 1/2 million shares of common stock outstanding, 1 million shares of preferred stock,...

ABC Corporation has 1/2 million shares of common stock outstanding, 1 million shares of preferred stock, and 20,000 4.5% semiannual bonds outstanding. The common stock has a beta of 1.2. The corporate bond has a par value of $1,000 each and matures in 21 years. Currently the bonds are selling at 104% of their face values. The market risk premium is 10%. The risk-free rate is 2.5%. The common stock sells for $75 per share. The preferred stock sells for...

Anderson Corporation has 1 million shares of common stock outstanding, 1/2 million shares of preferred stock,...

Anderson Corporation has 1 million shares of common stock outstanding, 1/2 million shares of preferred stock, and 20,000 3.5% semiannual bonds outstanding. The common stock has a beta of 1.2. The corporate bond has a par value of $1,000 each and matures in 14 years. Currently the bonds are selling at 94% of their face values. The market risk premium is 9%. The risk-free rate is 3%. The common stock sells for $40 per share. The preferred stock sells for...

Baur Company has 21,000 shares of $10 par value, 8% preferred stock and 500,000 shares of...

Baur Company has 21,000 shares of $10 par value, 8% preferred stock and 500,000 shares of $1 par value common stock outstanding. As of December 31, 2018, it had $900,000 of Retained earnings. On December 31, 2018, the Board of Directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared in 2016 and 2017 and no dividends were in arrears prior to 2016. The company is considering the following options. Option...

Spicer Reports Corp has 400,000 shares of common stock outstanding, 200,000 shares of preferred stock outstanding,...

Spicer Reports Corp has 400,000 shares of common stock outstanding, 200,000 shares of preferred stock outstanding, and 40,000 bonds. If the common shares are selling for $25 per share, the preferred shares are selling for $12.50 per share, and the bonds are selling for 97 percent of par, what would be the weight used for common stock equity in the computation of Spicer's WACC? A. 18.59% B. 19.49% C. 24.37% D. 62.50% E. 79.75% Comfort Chair, Inc. has a $1.5...

Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000 shares...

Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000 shares of $10 par value common stock. The preferred stock was issued in January 2017, and no dividends were declared in 2017 or 2018. In 2019, Nottebart declares a cash dividend of $300,000. How will the dividend be shared by common and preferred stockholders if the preferred is (a) noncumulative and (b) cumulative?

Question