Wedge Corporation Has the Following Capital Stock Outstanding

Essay

Wedge Corporation has the following capital stock outstanding:
$1 par value common stock, 250,000 shares.
8% preferred stock, par $100, 5,000 shares, cumulative, with 2 years in arrears.
Cash dividends of $150,000 were declared and paid near the end of the current year.
Required:
A.Calculate the dividends paid to the preferred stockholders.
B.Calculate the dividends paid to the common stockholders.