Reference no: EM1342601

Houston Corporation has the following stock outstanding:

5% cumulative preferred stock, par $20 ( 50,000 shares issued and outstanding )     $1,000,000

Common stock, par $5  (40,000 shares issued and outstanding ))                           $2, 000,000

In 2012, Houston paid $330,000 in dividends. No dividends were paid in 2011 or 2010.

Required:

a) Compute the total amount of dividends that was paid to each class of stock.
b) Compute the amount of dividends per share for each class of stock.