Question

Dividends Per Share

Seacrest Company has 20,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $25 par common stock. The following amounts were distributed as dividends:

Year 1	$150,000
Year 2	48,000
Year 3	180,000

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

Ans: 7 year L Year 2 Year ъ , 13.60 Preferred stock (corridonds per shere) $3 $2.40 Common stock Corividends per Shere) $1.80 $0 $2:40 Working notes Preferred Dividend = 30,000 X $150 x 2% $ 60,000 Preferred stock felvidbuds fer shero) 4e934. $60,000/20,000 $3 Reebored stock (ewichuds per Shese) Year 2 * 48000 20,000 Beckered stock (pohvickiends fee shere) Year 3, $72,000) 20,0t0 = $3.60 Common stock (siviends feri Shore) years = $90,000) 50,000 $1.80 Common Stock (Dividkuds for Share) 4ear 2- (Year = $0 Commen Stock (oviceuds per Shave) Year 3 = $(08,000/50,600 = $2.16

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