Capital Stock Structure is as follows:
Preferred Stock-10% cumulative; participating to the extent of 3% above preference rate; par value $100; authorized, 50,000 shares, issued, 10,000 shares.
Common stock-Par value $100;authorized, 100,000 shares; issued, 10,000 shares.
Total dividend payments made during the first 5 years:
Year 1 $210,000 Total Dividend payment
Year 2 280,000 Total Dividend payment
Year 3 40,000 Total Dividend payment
Year 4 370,000 Total Dividend Payment
Year 5 250,000 Total Dividend Payment
The total preferred dividend payment in year one was: $100,000: $105,000: $110,000: or $130,000.
In year 5 the common dividend paid was:
$100,000: $125,000: $120,000: or $150,000
A preferred dividend arrearage was paid in:
Year 1: Year 2: Year 3 or Year 4
The 3% participation dividend paid on preferred stock in year 2 was:
$10,000: $30,000: $20,000 or $40,000.
If you can show me the calculations to arrive at the answers for these questions, it would be greatly appreciated.
