a company had stock outstanding as follows during each of its first three years
ID: 2403349 • Letter: A
Question
a company had stock outstanding as follows during each of its first three years of operations A company had stock outstanding as follows during each of its first three years of operations: 3,000 shares of 1 49,000 shares of $10 par common stock. The amounts distributed as dividends are presented class of stock for each year by completing the schedule. Round dividends p 0%, $100 par, cumulative preferred stock and below. Determine the total and per-share dividends for each er share to the nearest cent. Enter" if no dividends are paid. Preferred Common Total Per Share Total Dividends $22,500 30,000 51,130 YearExplanation / Answer
Preferred
Common
Year
Dividends
Total
Per share
Total
Per share
1
$22500
$22500
$7.50
$0
$0
2
$30000
$30000
$10
$0
$0
3
$51130
$37500
$12.50
$13630
$0.28
Working Note;
1. Annual preference dividend will be ($300000 * 0.1) = $30000, So in first year there will be no dividend on common stock.
2. In second year also there will be no dividend on common stock.
3. In year third, there will be ($7500 + $30000) = $37500 preference dividend. So common stock dividend will be ($51130 – $37500) = $13630
Preferred
Common
Year
Dividends
Total
Per share
Total
Per share
1
$22500
$22500
$7.50
$0
$0
2
$30000
$30000
$10
$0
$0
3
$51130
$37500
$12.50
$13630
$0.28
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.