Answer:
Common Dividend paid in 2019 = $37,000
Explanation:
Given:
Number of shares = 6,000
Rate = 4% = 0.04
Share price = $100
Computation of per year Dividend
Dividend = Number of shares × Share price × Rate
Dividend = 6,000 × $100 × 0.04 = $24,000 per year
Preferred dividend for 2 years = $24,000 × 2 = $48,000
Computation of Dividend paid in 2019:
Total Dividend paid = $85,000
Preferred dividend for 2 years = $24,000 × 2 = $48,000
Common Dividend paid in 2019 = $85,000 - $48,000
Common Dividend paid in 2019 = $37,000
