Reference no: EM132615397

Question - Martinez Corporation issued 150,000, $5.00 cumulative preferred shares to fund its first investment in wind generators. In its first year of operations, it paid $381,000 of dividends to its preferred shareholders. In its second year, the company paid dividends of $1,119,000 to its preferred shareholders.

What is the total annual preferred dividend supposed to be for the preferred shareholders?

If the preferred shares were noncumulative rather than cumulative, how much dividend would the company likely have paid its preferred shareholders in year 2?