Question

Dividends Per Share

Sandpiper Company has 20,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends:

Year 1	$40,000
Year 2	10,000
Year 3	60,000

Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.

	Year 1	Year 2	Year 3
Preferred stock (Dividends per share)	$	$	$
Common stock (Dividends per share)	$	$	$

Answer 1

	Year 1	Year 2	Year 3
Preferred stock (Dividends per share)	1.00	0.50	1.50
Common stock (Dividends per share)	0.40	0.00	0.60
Workings:
Annual Preferred Dividends	20000	=20000*100*1%
Year 1:
Preferred Dividends	20000
Common Dividends	20000	=40000-20000
Year 2:
Preferred Dividends	10000
Common Dividends	0
Year 3:
Preferred Dividends	30000	=20000+10000
Common Dividends	30000	=60000-30000
	Year 1	Year 2	Year 3
Preferred stock (Dividends per share)	=20000/20000	=10000/20000	=30000/20000
Common stock (Dividends per share)	=20000/50000	0.00	=30000/50000