A company had stock outstanding as follows during each of its first three years
ID: 2397368 • Letter: A
Question
A company had stock outstanding as follows during each of its first three years of operations: 4,000 shares of 9%, $100 par, cumulative preferred stock and 58,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Round dividends per share to the nearest cent. Enter "O" if no dividends are paid Preferred Common Dividends $27,000 36,000 71,500 Year Total Per Share Total Per ShareExplanation / Answer
Preferred
Common
Year
Dividends
Total
Per Share
Total
Per Share
1
27000
27000
6.75
0
0
2
36000
36000
9
0
0
3
71500
(36000 + 9000)
=45000
11.25
26500
0.4569
Preference Stock Dividend = 4000 share * $100 * 9% = $ 36000
Preferred
Common
Year
Dividends
Total
Per Share
Total
Per Share
1
27000
27000
6.75
0
0
2
36000
36000
9
0
0
3
71500
(36000 + 9000)
=45000
11.25
26500
0.4569
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