Question

York’s outstanding stock consists of 85,000 shares of noncumulative 7.0% preferred stock with a $5 par value and also 260,000 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	$	19,100
2016 total cash dividends		27,700
2017 total cash dividends		230,000
2018 total cash dividends		380,000

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.)

Answer 1

• All working forms part of the answer
• Workings

	Par Value per Preferred Share	Dividend rate	Dividend per Preferred Share	No. of Preferred Shares	Preferred Dividend
Annual Preferred Dividend:	$                             5	7.00%	$                   0.350	85,000	$            29,750.00

	Total Cash Dividend paid	Paid to Preferred	Paid to Common
2015	$            19,100.00	$           19,100.00	$                          -
2016	$            27,700.00	$           27,700.00	$                          -
2017	$          230,000.00	$           29,750.00	$        200,250.00
2018	$          380,000.00	$           29,750.00	$        350,250.00
TOTAL	$          656,800.00	$        106,300.00	$        550,500.00

• Requirement: Total Dividends and Per share Dividend

	2015	2016	2017	2018
Preferred Dividend:
Total	$              19,100.00	$          27,700.00	$         29,750.00	$        29,750.00
Dividend per share	$                         0.22	$                    0.33	$                   0.35	$                   0.35
Common Stock Dividend:
Total	$                              -	$                         -	$      200,250.00	$      350,250.00
Dividend per share	$                              -	$                         -	$                   0.77	$                   1.35