Since it was organized in March 19X1, Block Inc. has had 5,000 outstanding shares of $100 par value, 7% preferred stock and 30,000outstanding shares of $25 par value common stock. It hasdeclared and paid dividends each year as shown below. Calculate and present in the following table the total dividends that would be paid to each class of stockholder under each of the two assumptions.
Preferred Stock is Not Preferred Stock Is
Cumulative Cumulative
|
Year
|
Dividends Declared and Paid
|
Preferred Dividend
|
Common Dividend
|
Preferred Dividend
|
Common Dividend
|
|
19X1
|
$29,000
|
|
|
|
|
|
19X2
|
$45,000
|
|
|
|