on january 1 2004 a corporation issued 25000 shares of %10 $50 par cumulative pr
ID: 2387567 • Letter: O
Question
on january 1 2004 a corporation issued 25000 shares of %10 $50 par cumulative preferred stock and 50000 shares of $30 par common stock. Cash dividends declared by the board were as follows. Determing the amount of total dividends and dividends per share for preferred stockholders and common stockholders.
2004 none
2005 $100,000
2006 $275,000
2007 $305,000
2008 $355,000
Year
Total Preferred
Per share Preferred
Total common
Per share common
2004
2005
2006
2007
2008
Year
Total Preferred
Per share Preferred
Total common
Per share common
2004
2005
2006
2007
2008
Explanation / Answer
Year 2004 0 0 0 2005 No dividend declared in 2004, so in 2005 total cumulative dividend on preferred stock =25000*10%*50*2 250000 Dividend to preferred share holder = 100,0000 Per preferred share = 100000/25000 = $ 4 per share 2006 In 2006 divdidend declared = 275,000 total cumulative preferred dividned = 250,000-100,000+125000 275000 Total devidend declared Total prefferred per share preferred Total common per share common 2004 0 0 0 0 0 2005 100000 100000 4 0 0 2006 275000 275000 11 0 0 2007 305000 125000 5 180000 3.6 2008 355000 125000 5 230000 4.6
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