Preferred shares, $4.55 non-cumulative, 52,000 shares authorized and issued* $ 3,328,000 Common shares, 87,000 shares authorized and issued* 1,392,000 Required: Part A 1. Calculate the total dividends paid in each year to the preferred and to the common shareholders.
Preferred shares, $4.55 non-cumulative, 52,000 shares authorized and issued* $ 3,328,000 Common shares, 87,000 shares authorized and issued* 1,392,000 Required: Part A 1. Calculate the total dividends paid in each year to the preferred and to the common shareholders.
Preferred shares, $4.55 non-cumulative, 52,000 shares authorized and issued* $ 3,328,000 Common shares, 87,000 shares authorized and issued* 1,392,000 Required: Part A 1. Calculate the total dividends paid in each year to the preferred and to the common shareholders.
Required: Part A 1. Calculate the total dividends paid in each year to the preferred and to the common shareholders.
Transcribed Image Text:Preferred
Common
Year
Total Dividend
Dividend
Dividend
2018
$
167,000
2019
407,000
2020
567,000
Total for three years
$
0 $
0 $
1,141,000
Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.
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