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At the beginning of its first year, White Sox Corp. had the following capital structure:
Preferred shares- 5,000 issued, 6% dividend $100,000
Common shares- 8,000 issued $400,000
$500,000
Dividends declared and paid were as follows in its first two years: Yr. 1- $5,000; Yr. 2- $41,000
Required:
Prepare a table showing the amount of dividends paid in Yr. 1 and Yr. 2 to each class of shareholder under the following assumptions:
- The preferred stock is noncumulative and non participating
- The preferred stock is cumulative and fully participating
- The preferred stock is cumulative and participating after the common shares receive 8% of their invested capital.
please show calculations
please show calculations
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