Question

Dividends Per Share Sandpiper Company has 25,000 shares of cumulative preferred 1% stock, $50 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: 20Y1 $25,000 20Y2 5,000 2013 37,500 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 (dividends per share) Common Stock (dividends per share) 2011 0 A 20Y2 A 0 t - 20Y3 0 to

Answer 1

Solution:

Annual preferred dividend = 25000*$50*1% = $12,500

M N O P 2072 I $5,000 2043 $37,500 Sandpiper Company T 2011 T Total dividend Paid (A) | $25,000 Less: Total Preferred Dividend paid Preferred Dividend paid for current year $12,500 Arrears of Preferred Dividend Paid Total Preferred dividend paid (B) $12,500 Total Common Dividend paid (A-B) $12,500 $5,000 $0 500 $12,500 $7,500 $20,000 $17,500 $5,000 $0 2042 2043 Sandpiper Company 2041 Preferred Stock (dividend per share) (Total / Number of shares) $0.50 Common Stock (dividend per share) (Total / Number of shares) $0.25 $0.20 $0.80 $0.00 $0.35 39 40 -146 (9) ) Sheet567 Sheet194 (5) ) Sheet568 Sheet569