Calculate the cash dividends required to be paid for each of the following preferred stock issues: Required: The semiannual dividend on 6% cumulative preferred, $62 par value, 8,200 shares authorized, issued, and outstanding. The annual dividend on $2.25 cumulative preferred, 130,000 shares authorized, 78,000 shares issued, 68,900 shares outstanding. Last year's dividend has not been paid. The quarterly dividend on 10.0% cumulative preferred, $90 stated value, $106 liquidating value, 78,000 shares authorized, 67,600 shares issued and outstanding. No dividends are in arrears.

Preferred dividend calculation:

= Percentage return * Par Value * number of shares

a. The semiannual dividend on 6% cumulative preferred, $62 par value, 8,200 shares authorized, issued, and outstanding.

= 6% * 62 * 8,200 * 1/2 years

= $‭15,252‬

b. The annual dividend on $2.25 cumulative preferred, 130,000 shares authorized, 78,000 shares issued, 68,900 shares outstanding. Last year's dividend has not been paid.

In this case, last year's dividend was not paid and this is a cumulative preferred stock so the dividend will be accrued from last year and paid this year.

= Preferred dividend * 2 years

= (2.25 * 68,900 shares outstanding) * 2

= $‭310,050‬

c. The quarterly dividend on 10.0% cumulative preferred, $90 stated value, $106 liquidating value, 78,000 shares authorized, 67,600 shares issued and outstanding. No dividends are in arrears.

= 10% * 90 * 67,600 * 1/4 years

= $152,775

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