Question

help me with these problems please

Dividends Per Share Zero Calories Company has 15,000 shares of cumulative preferred 1% stock, $50 par and 100,000 shares of $10 par common stock. The following amounts were distributed as dividends: 20Y1 $28,500 2012 6,000 20Y3 110,000 Determine the dividends per share for preferred and common stock for each year. If an answer is zero, enter 'o'. Round all answers to two decimal places. Preferred Stock (dividends per share) $ 28,500 Common Stock (dividends per share) $ 6,000 2011 20Y2 2013 Feedback Check My Work Determine what amount of current dividends that preferred stock should receive per year. Keep in mind that the question is asking for a dividend per share for each year and class of stock, rather than the total amount to be distributed to each class of stock.

Answer 1

1) dividend distribution

Preferred dividend = 15000*50*1% = 7500

	Preferred dividend per share	Common Dividend per share
20Y1	7500/15000 = 0.50	21000/100000 = 0.21
20Y2	6000/15000 = 0.40	0
20Y3	9000/15000 = 0.60	101000/100000 = 1.01

2) Number of share outstanding = 325000*3 = 975000 Share

Market value per share = 450/3 = 150 per share