Wades outstanding stock consists of 40,000 shares of noncumulative 7 5 preferred stock with a $10 par value and also 100,000 shares of common stock with a $1 par value During its first four years of operation, the corporation declared and paid the following total cash dividends 2011 $ 10,000 2012 2...

Preferred Common 2011 10000 paid Preferred 10000 Common re ...

Wades outstanding stock consists of 40,000 shares of noncumulative 7.5% preferred stock with a $10 par value

Question:

Wade’s outstanding stock consists of 40,000 shares of noncumulative 7.5% preferred stock with a $10 and also 100,000 shares of with a $1 During its first four years of operation, the declared and paid the following total cash dividends.
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . 196,000

Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...