To determine the total dividends to be paid to the preferred shareholders and common shareholders, we need to follow these steps:
### Step-by-Step Solution
#### Step 1: Calculate the total dividend for the preferred shareholders
Given:
- Number of preferred shares: 27,000 shares
- Par value of preferred shares: [tex]$120
- Dividend rate for preferred shares: 6%
First, we calculate the dividend per preferred share:
\[ \text{Dividend per preferred share} = \text{Par value} \times \text{Dividend rate} \]
\[ \text{Dividend per preferred share} = 120 \times 0.06 = 7.2 \]
Next, we calculate the total dividend for all preferred shares:
\[ \text{Total dividend for preferred shareholders} = \text{Number of preferred shares} \times \text{Dividend per preferred share} \]
\[ \text{Total dividend for preferred shareholders} = 27,000 \times 7.2 = 194,400 \]
#### Step 2: Calculate the total dividend for the common shareholders
Given:
- Number of common shares: 102,000 shares
- Dividend per common share: $[/tex]1
We calculate the total dividend for common shareholders:
[tex]\[ \text{Total dividend for common shareholders} = \text{Number of common shares} \times \text{Dividend per common share} \][/tex]
[tex]\[ \text{Total dividend for common shareholders} = 102,000 \times 1 = 102,000 \][/tex]
#### Step 3: Calculate the total dividend
We sum the total dividends for both preferred and common shareholders:
[tex]\[ \text{Total dividend} = \text{Total dividend for preferred shareholders} + \text{Total dividend for common shareholders} \][/tex]
[tex]\[ \text{Total dividend} = 194,400 + 102,000 = 296,400 \][/tex]
### Final Answer
| | |
|-----------------------|------------------|
| Preferred stock | [tex]$194,400.00 |
| Common stock | $[/tex]102,000.00 |
| Total dividends | $296,400.00 |
