Question

Sanchez Company has 50,000 shares of 2% preferred stock of $100 par and 94,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1 $513,000 Year 2 $488,000 $554,000 Year 3 Determine the dividends per share for preferred and common stock for each year. Round the dividends per share to the nearest cent. Year 1 Year 2 Year 3 Amount distributed $ Preferred dividend $ $ $ Common dividend Dividends per share: Preferred stock TA Common stock $

Answer 1

Amount distributed Preferred dividend Common dividend Year 1 5130001 100000 Year 2 488000 100000 Year 3 554000 100000 454000 413000 388000 Dividend per share: Preferred stock (Dividend per share) Common stock (Dividend per share) 2.00 2.00 2.00 4.39 4.13 4.83 Preferred dividend per share = Preferred dividend / Preferred shares Common stock dividend = Commonstock dividend / Common shares