Calculate the total dividends to be paid to each group

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Reference no: EM132761696

Problem - Theo Inc. has issued and outstanding a total of 25,000 shares of $4.10 preferred shares and 110,000 of common shares. The company began operations and issued both classes of shares on January 1, 2021.

Required -

1. Calculate the total dividends to be paid to each group of shareholders in each year by completing the following chart. Assume that the preferred shares are cumulative.

Year	Dividends Declared and Paid	Preferred Dividends	Common Dividends
2018	$250,000
2019	55,000
2020	325,000
2021	280,000
Total	910,000

2. Calculate the dividends per share to both the preferred and the common shares in 2020 based on the information above.

Reference no: EM132761696

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