Question

Dividends Per Share

Sandpiper Company has 30,000 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	$225,000
Year 2	36,000
Year 3	270,000

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

Year 1 Year 2 Year 3 Dividend per share: Preferred stock (Dividend per share) Common stock (Dividend per share) 3.00 2.70 1.20 0.00 4.80 2.52 0.00 Explanation: Amount distributed Preferred dividend Common dividend 225000 90000 135000 36000 36000 0 270000 144000 126000 Preferred dividend per share = Preferred dividend / Preferred shares Common stock dividend = Commonstock dividend / Common shares Preferred Dividend = ($150*2%) * 30,000 shares = $90,000