Question - McEnroe Inc. has outstanding 10 million shares of $2 par value common stock and 1 million shares of $4 par value preferred stock. The preferred stock has a 7% cumulative dividend preference. The company declares total dividends amounting to $50,000, $250,000, and $600,000 during 2015, 2016, and 2017, respectively.
Required:
Part a. Compute the amount of dividends to be distributed to preferred and common shareholders during 2015.
Part b. Compute the amount of dividends to be distributed to preferred and common shareholders during 2016.
Part c. Compute the amount of dividends to be distributed to preferred and common shareholders during 2017.