a. Compute the total dividend and dividend per share for following years A. Stat

Question

a. Compute the total dividend and dividend per share for following years A. Statement of total dividends and dividend per share Preferred Dividend Common Dividend 3 Years Total Dividends Total Per Share Total Per hare 80000C4/250000 B4-C4E4/500000 190000 5/250000 |-B5-C51-ES 500000 130000 C625000 6-6 E6/50000 100000 |-7 250000 |-B7-C71-E7/500000 100000 |=C8250000 |=BS-C81-E8500000 100000 -C9/250000B9-C9 E9/500000 80000 90000 150000 6 3150000 3 160000 180000 Total dividend Per Share SUM(F4:F9) 10 SUMID4:D9)

Explanation / Answer

Preferred Stock:

Preferred Stocks are cumulative in nature.

Annual Dividend is $100,000

Company declared total dividends of $80,000 in year 1 and $90,000 in year 2 which was insufficient to pay annual dividend to preferred stockholders. So, there was an arrear of $20,000 and $10,000 preferred stock dividend in year 1 and year 2, respectively. These arrears was paid in year 3 along with the annual dividend of $100,000.

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