Red inc organized in January 2020, has 1,500, $ 10.00, preferred shares, and 15,000 common shares outstanding. The corporation declared and paid dividends each year as shown below. Year Total Dividends 2020 $ 10,000 2021. $ 36,000 2022 $ 60,000.

1. calculate the total dividends paid to each class of shares assuming the preferred shares are cumulative. ( preferred dividends, common dividends, total dividends) 

2. calculate the total dividends paid to each class of shares assuming the preferred shares are NON-cumulative. ( preferred dividends, common dividends, total dividends) 

3. calculate the dividends per share to both the preferred and the common shares in 2021.

Answer rating: 100% (QA)

Answer FormulaPreferred DividendNumber of Preferred sharesPar valueRate of dividend Number of ... View the full answer