Question

Dividends Per Share Windborn Company has 15,000 shares of cumulative preferred 2% stock, $100 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: 20Y1 $75,000 12,000 20Y2 2013 90,000 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 'o'. Preferred Stock (dividends per share) $ 0.2 x Common Stock (dividends per share) 20Y1 2092 20Y3

Answer 1

	Par Value per Preferred share	Dividend Rate	Dividend per Preferred Share	Number of Preferred Shares	Preferred Dividend
Annual Preferred Dividend	$100.00	2.00%	2.000	15000	30000
	Total Cash Dividend Paid	Paid to Preferred	Paid to Common	Dividends in Arrears at Year-end
20Y1	75000	30000	45000	0
20Y2	12000	12000	0	18000
20Y3	90000	48000	42000	0
Totals	177000	90000	87000

	Preferred Stock (dividends per share)	Common Stock (dividends per share)
20Y1	$2.0	$0.9
20Y2	0.8	0
20Y3	3.2	0.8
Dividend per share = Dividends/ Number of shares outstanding

Balance sheet
Stockholders' Equity
Paid in Capital:
Common Stock, $ 70 par (20000 shares Authorized, 16000 shares Issued)	1120000
Excess of Issue Price over par	160000
Paid in Capital, Common Stock		1280000
From sale of treasury Stock		56000
Total paid in capital		1336000
Retained Earnings		650000
Total		1986000
Treasury stock		-26000
Total Stockholders' Equity		1960000