Wade's 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.............. $ 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. Use the data above to determine the amount of dividends paid each year to each of the two classses of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined.