Problem $10-87$A $($Algorithmic$)$

Preferred Dividends

Prestige Investments had the following preferred stock outstanding at the end of a recent year:

$$25$ par, $10\%$

$$35$ par, $8\%,$ cumulative

$$50$ par, $12\%,$ cumulative, convertible

$$80$ par, $11\%,$ nonparticipating

$6,000$ shares

$11,000$ shares

$2,000$ shares

$15,000$ shares

Required:

Determine the amount of annual dividends on each issue of preferred stock and the total annual dividend on all four issues.

Issue $1($ $$25$ par, $10\%)$ of preferred stock

Issue $2($ $$35$ par, $8\%,$ cumulative$)$ of preferred stock

Issue $3($ $$50$ par, $12\%,$ cumulative, convertible$)$ of preferred stock

Issue $4($ $$80$ par, $11\%,$ nonparticipating$)$ of preferred stock

Total annual dividend

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