Dedrick, inc., did not pay dividends in 2015 or 2016, even though 70,000 shares of its 8.5%, $50 par value cumulative preferred stock were outstanding during those years. the company has 500,000 shares of $2 par value common stock outstanding. required:

a. calculate the annual dividend per share obligation on the preferred stock. (round your answer to 2 decimal places.)

b. calculate the amount that would be received by an investor who has owned 1,400 shares of preferred stock and 16,000 shares of common stock since 2014 if a $0.60 per share dividend on to the common stock is paid at the end of 2017.

a) each year 4.25 dollars

  dividends in arrears 9.50 dollars

b) the investor received $ 28,850

Explanation:

dividends per year of preferred stock

70,000 shares x $50 each x 8.5% = 297,500 dollar per year

per share: 4.25 dollars

As the preferred stock accumualted 2 years in arrears:

297,500 x 2 = 595,000

per share: 595,000 / 70,000 = 9.50

b) to pay dividends to common stock first the firm should pay the preferred stocks thus; it received:

from preferrred stock:

1,400 x (9.50 arrears dividends + 4.25 current year dividends) = 19,250

from common stock:

16,000 x 0.60 = 9,600

In total it received 28,850

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi