Question

Dividends Per Share Windborn Company has 20,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 Year 2 $90,000 48,000 180,000 Year 3 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'. Year 2 Year 3 Preferred stock (Dividends per share) 1.60 x 2.73 Common stock (Dividends per share) 0 1 .96

Answer 1

Preference dividend = 20000 x $150 x 2% = $60000

	Year 1	Year 2	Year 3
Total Preference Dividend	$              60,000	$                  48,000	$            72,000
Preference Dividend per share	$                   3.00	$                       2.40	$                 3.60
Total Common Dividend	$              30,000	$                            -	$          108,000
Common Dividend per share	$                   0.60	$                            -	$                 2.16
Total Dividend Paid	$              90,000	$                  48,000	$          180,000