nmentSessionLocator assignment nment-take&linprogressfal; takeA Assignment Main.

Question

nmentSessionLocator assignment nment-take&linprogressfal; takeA Assignment Main.do?invoker assignments&utakeAssig; Calculalo during each of its first three years of operations: 4,000 shares of 8%, s 100 par, cumulative preferred stock and 52,000 shares of S es dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the s Round dividends per share to the nearest cent. Enter "O if no dividends are paid. Preferred Common Year Dividends Total Per Share Total Per Share 524,000S24,000 32,000 s_ 53,400 s 32,000 10 13,400 0.26

Explanation / Answer

Ans. Determining total dividend and per share dividend.

Year           Total dividend               Preferred dividend   preferred dividend per share     equity dividend    per share

                                                      (4000X100X.08)        (32000/4000)

1                   $24000                              $24000     $6                                             0

2                   $32000                              $32000                   $8                                                0

3                   $40000                              $32000                   $8                                                $8000      $.15

*Preferred stock annual dividend is $32000, and for first because of profit less than minimum dividend, so dividend is extent upto profit,

** equity dividend available after paying preferred dividend, first two year is no equity dividend, and 3 yrs after paying preferred dividend only $8000, is paid to equity and total equity no of share is 52000, per share equity dividend is $.15

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