Reference no: EM132740944

Question - Magic Corporation has 3,000 shares of $100, 5 percent cumulative preferred stock outstanding and 100,000 share of $1 par value common stock outstanding. In the company's first three years of operation its board of directors paid the following cash dividends;

2013 $10,000;

2014 $15,000; and

2015 $50,000

Required -

1. Determine the total cash dividends paid to the preferred and common stockholders during each of the three years.

2. Calculate dividends per share for preferred and common shareholders in the years dividends were paid.