Reference no: EM133180671

Question - Dedrick Inc. did not pay dividends in 2018 or 2019, even though 49,400 shares of its 7.8%, $60 par value cumulative preferred stock were outstanding during those years. The company has 276,000 shares of $3 par value common stock outstanding.

Required -

1. Calculate the annual dividend per share obligation on the preferred stock.

2. Calculate the amount that would be received by an investor who has owned 180 shares of preferred stock and 350 shares of common stock since 2017 if a $0.40 per share dividend on the common stock is paid at the end of 2020.