Answer:
Preferred dividends paid = $22,900
Common dividends paid = $32,300
Explanation:
As per the data given in the question,
Total value of preferred shares = 1,900 × $100
= $190,000
Annual preferred dividend = $190,000 × 5%
= $9,500
Until $9,500 is not paid in dividends to the preferred shareholders, dividends will not be paid to the common stockholders.
The preferred stock is non-cumulative which indicates, in any year if no preferred dividends are paid or preferred dividends of less than $9,600 is paid in any year, the balance of preferred dividends will not be carried to next year.
So,
Preferred dividends paid = $3,900 + $9,500 + $9,500
= $22,900
Common dividends paid = ( $3900 + $9,800 + $41,500) - $22,900
= $32,300
