As head of Adita Inc., potential investors are asking questions about the company’s dividend payment history. The investors are also curious how dividend payments differed for common and preferred shareholders. To help answer their questions, the following Tableau Dashboard is provided.

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Year 1 Cash Dividends Distributed: $25,000

Year 2 Cash Dividends Distributed: $30,000

Year 3 Cash Dividends Distributed: $210,000

Year 4 Cash Dividends Distributed: $360,000

Preferred Stock: 70,000 shares

Common Stock: 180,000 shares

 
 
 
Year 1 Common Stock Share Price: $14

Year 2 Common Stock Share Price: $20

Year 3 Common Stock Share Price: $18

Year 4 Common Stock Share Price: $25

1. What are the total cash dividends paid out for Years 1, 2, 3, and 4 combined?
2. Assume that preferred stock is noncumulative and compute the Year 4 cash dividends paid to (a) preferred stockholders and (b) common stockholders.

  
 

 

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Cash Dividends Distributed by Year $400,000 $350,000 $300,000 $250,000 $200,000 Number of Shares Preferred Stock Te Common Stock Cash Dividends Distributed by Year $400,000 $350,000 $300,000 $250,000 $200,000 Number of Shares Preferred Stock Te Common Stock

Answer rating: 100% (QA)

Annual Preferred Dividend Year 1 Year 2 Year 3 Year 4 TOTAL Par Value per Preferred Sh... View the full answer