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    mybubba619's Avatar
    mybubba619 Posts: 1, Reputation: 1
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    #1

    Jan 18, 2008, 08:53 AM
    Dividends on common and cumulative stock.
    York's outstanding stock consists of (a) 80,000 shares of cumulative 7.5% preferred stock with a $5 par value and (b) 200,000 shares of common stock with a $1 par value. During the first four years of operation the corporation declared and paid the following total cash dividends;

    2006.. . $20,000
    2007.. . $28,000
    2008.. . $200,000
    2009.. . $350,000

    Determine the amount of dividends paid each year to each of the two classes of stockholders. Also determine the total dividends paid to each class for the four years combined.
    Gator1087's Avatar
    Gator1087 Posts: 17, Reputation: 3
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    #2

    Jan 18, 2008, 03:11 PM
    .075 x 5 x 80,000= 30,000 -preferred dividends per year
    2006: 20,000 - Preferred 10,000 in arrears
    2007: 28,000- preferred 12,000 in arrears
    2008: 30,000+12,000+10,000= 52,000 Preferred
    148,000 Common
    2009: 30,000 Preferred
    320,000 common
    Total=120,000 preferred and 478,000 common

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