$60 par, 100k shares, 15% cumulative preferred, 2 years in arrears...
Each year the preferreds are due: ($60 * 100k) * 0.15 = $90,000 in dividends
2 years in arrears = $180,000 + current year $90k = $270,000 due in current year
Preferreds are paid in full before any dividends go to common...
1) if total dividends paid = $360k, $270k is paid to preferreds, and the balance of $90k is paid to common shareholders
2) if total dividends paid = $280k, $270k is paid to preferreds, and the balance of $10k is paid to common shareholders
Not sure if your question asked the "per share" amounts, if so, divide each amount paid to each class by the number of that class's outstanding shares.
Okay, so I have this homework assignment for my accounting I class. I've completed 5/7 of the sections by myself but these last two sections I just don't get at all. If someone could explain this to me that'd be amazing. Thanks.
