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]

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