Question

Required Dividends Tetal Yewr 343,00 Year S 21000 Year 6263,000 2. Determine the average annual dividend per share for each dass of stock for the ax year pened. I resured, round your aneers to teo decimal places Average anualvidend forcomon 3. Assuming a maiet pnce per share of 165 for the prefemred stock and 126 for the common stock, determine theverage ualpercentage tum on intil shaholde esment, based on the average annual dividend per share for preerred Round your anwers to b Preferred stock
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Answer #1

1)

Preferred Dividends Common Dividends
Year Total Dividends Total Per Share Total Per Share
Year 1 $                    30,000.00 $    30,000.00 $       1.20 $                   -  
Year 2 $                    90,000.00 $    90,000.00 $       3.60 $                   -  
Year 3 $                 143,000.00 $ 105,000.00 $       4.20 $    38,000.00 $       0.38
Year 4 $                 173,000.00 $    75,000.00 $       3.00 $    98,000.00 $       0.98
Year 5 $                 218,000.00 $    75,000.00 $       3.00 $ 143,000.00 $       1.43
Year 6 $                 263,000.00 $    75,000.00 $       3.00 $ 188,000.00 $       1.88
Total $ 450,000.00 $ 467,000.00

2)

Average annual dividend for preferred $3.00 per share
Average annual dividend for common $0.78 per share

3)

Preferred stock 1.86%
Common stock 3.00%
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