McBean Company has outstanding 18 million shares of $3 par value

McBean Company has outstanding 18 million shares of $3 par value common stock and 1.8 million shares of $5 par value preferred stock. The preferred stock has a 8% dividend rate. The company declares $10,800,000 in total dividends for the year. Preferred Dividends in arrears are $540,000.

A. Compute the amount of dividends to be distributed to preffered shareholders. (Enter your answer in dollars and not millions)

Preffered dividend -

B. Compute the amount of dividends to be distributed to common shareholders. (Enter your answer in dollars and not in millions)

Common dividend -

Here’s the SOLUTION

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