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Preferred Dividends Steel Corporation had the following preferred stock outstanding at the end of a recent year:
$20 par, 12% 10,000 shares
$40 par, 6%, cumulative 12,400 shares
$50 par, 10%, cumulative, convertible 12,000 shares
$100 par, 11%, nonparticipating 5,000 shares
Required: 1. Determine the amount of annual dividends on each issue of preferred stock and the total annual dividend on all four issues.
Issue 1 ($20 par, 12%) of preferred stock
Issue 2 ($40 par, 6%, cumulative) of preferred stock
Issue 3 ($50 par, 10%, cumulative, convertible) of preferred stock
Issue 4 ($100 par, 11%, nonparticipating) of preferred stock
Total annual dividend $
2. Calculate what the amount of dividends in arrears would be if the dividends were omitted for 1 year.
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