Answer and Explanation:
The presentation of each year dividend amount and the total dividend paid is shown below:
Particulars Par Dividend Dividend No. of Preferred
value Rate Per preferred dividend
Preferred Preferred shares
shares shares
Annual
preferred
dividend $5 6.50% $0.325 $80,000 $26,000
Particulars Total cash Paid to Paid to Dividend in arrears
dividend preferred common paid at year end
2016 $15,500 $15,500 $0 $0
2017 $24,000 $24,000 $0 $0
2018 $225,000 $26,000 $199,000 $0
2019 $375,000 $26,000 $349,000 $0
Total $639,500 $91,500 $548,000 $0
The dividend is the amount which is paid to the preference shareholders and the equity shareholders but the first the payment is made to preference shareholders
