Distributing Cash Dividends to Preferred and Common Shareholders Dechow Company has
outstanding 22,000 shares of $50 par value, 5% cumulative preferred stock, and 80,000 shares of
$10 par value common stock. The company declares and pays cash dividends amounting to $160,
000. a. If no arrearage on the preferred stock exists, how much in total dividends, and in dividends
per share, is paid to each class of stock? Round to nearest penny. b. If one year's dividend
arrearage on the preferred stock exists, how much in total dividends, and in dividends per share, is
paid to each class of stock? Round to nearest penny..
Dividend Distribution to Preferred and Common Shareholders
1. Distributing Cash Dividends to Preferred and Common Shareholders Dechow Company has
outstanding 22,000 shares of $50 par value, 5% cumulative preferred stock, and 80,000 shares of
$10 par value common stock. The company declares and pays cash dividends amounting to $160,
000. a. If no arrearage on the preferred stock exists, how much in total dividends, and in dividends
per share, is paid to each class of stock? Round to nearest penny. b. If one year's dividend
arrearage on the preferred stock exists, how much in total dividends, and in dividends per share, is
paid to each class of stock? Round to nearest penny.
