Houston Corporation has the following stock outstanding:
5% cumulative preferred stock, par $20 ( 50,000 shares issued and outstanding ) $1,000,000
Common stock, par $5 (40,000 shares issued and outstanding )) $2, 000,000
In 2012, Houston paid $330,000 in dividends. No dividends were paid in 2011 or 2010.
Required:
a) Compute the total amount of dividends that was paid to each class of stock.
b) Compute the amount of dividends per share for each class of stock.