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E11-4 A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows

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A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows:

Stockholders’ equity:
Preferred stock, 9% cumulative, $50 par, 40,000 shares
Authorized, issued, and outstanding………………………………………………..…… $2,000,000
Preferred stock, 12% noncumulative, $100 par, 8,000
Shares authorized, used, and outstanding……………………………………………... 800,000
Common Stock, $5 par, 400,000 shares authorized, issued
And outstand………………………………………………………………………............ 2,000,000
Total paid-in capital…………………………………………………………..…..… $4,800,000

Assume that all the stock was issues on January 1 and that no dividends were paid during the first two years of operations. During the third year, Walland Corporation paid total cash dividends of $736,000.

A. compute the amount of cash dividends paid during the third year to each of the three classes of stock.

B. compute the dividends paid per sharing during the third year for each of the three classes of stock.

C. what was the average issue price of each type of preferred stock?


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