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IE Exercise 11-12 (Static): Dividends on common and cumulative preferred LO C2
York's outstanding stock consists of 80,000 shares of cumulative 7.5% preferred stock with a $5 par value and also 200,000 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:
Year 1 total cash dividends $ 20,000
Year 2 total cash dividends 28,000
Year 3 total cash dividends 200,000
Year 4 total cash dividends 350,000
Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common.
