Question

eBook Show Me How Calculator Dividends Per Share Seacrest Company has 10,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: 2011 $37,500 2012 6,000 20Y3 45,000 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 Common Stock (dividends per share) (dividends per share) 2011 0 x 2012 41,500 x 20Y3 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. Next > Check My Work Submit Assement for Gradir

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Answer 1

	Par value per preferred share	Dividend rate	Dividend per preferred share	Number of preferred shares	Preferred dividend
Annual preferred dividend	$50	3%	$1.50	10,000	$15,000
	Total cash dividend paid	Paid to preferred	paid to common	Dividend in arrears at year end
20Y1	$37,500	$15,000	$22,500	0
20Y2	$6,000	$6,000	0	$9,000
20Y3	$45,000	$24,000	$21,000	0

	20Y1	20Y2	20Y3
Preferred stock (Dividend per share)	$15,000/10,000 = $1.50	$6,000/10,000 = $0.60	$24,000/10,000 = $2.40
Common stock (Dividend per share)	$22,500/50,000 = $0.45	$0	$21,000/50,000 = $0.42