A company had stock outstanding as follows during each of its first three years
ID: 2398536 • 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 31,000 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 "0" if no dividends are paid.
Preferred
Common
Year
Dividends
Total
Per Share
Total
Per Share
Preferred
Common
Year
Dividends
Total
Per Share
Total
Per Share
1 $27,000 $ $ $ $ 2 36,000 $ $ $ $ 3 58,820 $ $ $ $Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Year 1 Year 2 Year 3 Total Dividend Paid 27,000.00 36,000.00 58,820.00 Preference Dividend to be paid = 4000 *100 *9% 36,000.00 36,000.00 36,000.00 Preference Dividend Paid = Existing + arrears 27,000.00 36,000.00 45,000.00 Dividend available for common stock - - 13,820.00 Arrears of preference Dividend 9,000.00 9,000.00 - Preferred Common Year Dividends Total Per Share Total Per Share 1 27,000.00 27,000.00 6.75 - 2 36,000.00 36,000.00 9.00 - 3 58,820.00 45,000.00 11.25 13,820.00 0.45
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