Question

Seacrest Company has 15,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends: Year 1 $90,000 Year 2 22,500 Year 3 135,000 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) $ $ $ Co mmon stock (Dividends per share) $ $ $

Answer 1

Answer Page: No Dividends per shaze for proberved and common stock Annual preferred dividend - 15000 shares x $150 pami value per shore x 2% $45000 In year a dividend paid = $22500 dividend in arrear on psebevred stock: 45000 -22500 #22500 in year 3, dividend paid to põeferred stock holders = 45000 +2260 = $67500 Yearl, Total dividends Prebevred dividend + Common dividend 45000 + 45000 Common dividend 90000 - 45000 $90,000 - $4 45000 Yeard, Total dividends = $39500 + $0 - $22500 Year 3, Total dividends = $67500 + 67600 $135000 Common dividend 135000-67500 $67500 Year! Year a Year 3 Preferred stock 45000 22500 1.5 $ 15000 15000 Dividend per share Common stock 45000 64500 $0.9 $0 $1.35 share 50,000 50,000 64500 15000 - $ 3 $415 Colvidend per