McGra X O ezto.mheducation.com/hm.tpx Time remaining: 4:42:41 value: 4.00 points
ID: 2522419 • Letter: M
Question
McGra X O ezto.mheducation.com/hm.tpx Time remaining: 4:42:41 value: 4.00 points York's outstanding stock consists of 42,000 shares of noncumulative 9.00% preferred stock with a $10 par value and also 105,000 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 $ 30,000 201635,800 2017100,000 2018195,000 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 "Dividend Rate (%)" to 1 decimal place and "Dividend per PTerred Share" to 2 decimal places.) Number of Dividend per Preferred Dividend Par Value Per Dividend Rato share Rate Preferred Preferred Preferred Shares Dividend Preferred Dividend Share Annual Preferred Dividend: S 10.00 9.0% 0.90 42,000 37,800 Paid to Dividends in Total Cash Paid to mmonArrears at r-end Dividend Paid Preferred Co S30,000S 30,000 $ 2015 2016 2017 2018 Total: S7,800 9,800 52,400 157,200 $360,800 S151,200 209,600 35,800 100,000 195,000 35,800 47,600 37,800 15Explanation / Answer
As the Preferred shares are non cumulative, dividends not paid in the year do not accumulate.
Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend : 10 9% 0.9 42,000 37,800 (42,000*0.9)