Answer:
total non-cumulative preferred stock dividends per year = 80,000 x 7.5% x $5 = $30,000
since the bonds are non-cumulative, if the dividends are not paid during one year, they are basically lost since they will not be paid in the future.
year
2015: $20,000 distributed to preferred stockholders
- $0.25 per preferred stock
- $0 to common stockholders
2016: $28,000 distributed to preferred stockholders
- $0.35 per preferred stock
- $0 to common stockholders
2017: $30,000 distributed to preferred stockholders, $170,000 distributed to common stockholders
- $0.375 per preferred stock
- $0.85 per common stock
2018: $30,000 distributed to preferred stockholders, $320,000 distributed to common stockholders
- $0.375 per preferred stock
- $1.60 per common stock
Dividends paid during the 4 year period:
Preferred stockholders received $108,000 in total
- $1.35 per preferred stock
Common stockholders received $490,000 in total
