Final answer:
The total amount of dividends paid to preferred and common shareholders over the three-year period is $19,200.
Step-by-step explanation:
The total amount of dividends paid to preferred and common shareholders over the three-year period can be calculated by multiplying the number of shares of each type of stock by the dividend rate for each year, and then summing the results. Here is how you can calculate it:
Preferred Stock Dividends:
Year 1: 1,600 shares * $100 par value * 4% dividend rate = $6,400
Year 2: 1,600 shares * $100 par value * 4% dividend rate = $6,400
Year 3: 1,600 shares * $100 par value * 4% dividend rate = $6,400
Total Preferred Stock Dividends: $6,400 + $6,400 + $6,400 = $19,200
Common Stock Dividends:
Year 1: 11,600 shares * $10 par value * 0% dividend rate = $0 (no dividends declared or paid)
Year 2: 11,600 shares * $10 par value * 0% dividend rate = $0 (no dividends declared or paid)
Year 3: 11,600 shares * $10 par value * 0% dividend rate = $0 (no dividends declared or paid)
Total Common Stock Dividends: $0 + $0 + $0 = $0
Total Dividends Paid to Preferred and Common Shareholders: $19,200 + $0 = $19,200