Question

Windborn Company has 30,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $5 par common stock. The following amounts were distributed as dividends:

Year 1	$135,000
Year 2	45,000
Year 3	270,000

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 '0'.

	Year 1	Year 2	Year 3
Preferred stock (Dividends per share)	$	$	$
Common stock (Dividends per share)	$	$	$

Answer 1

Current Stock Out-Standing Shares Common Stock @ $5 50000 250000 Preferred Stock 2% @$150 30000 4500000 Compute the Annual Dividend on Preferred Stock Preferred Stock Dividend 2% 90000 dividend Paid to Each class : Preferred Stock in Cumulative Year 1 Year 2 Year 3 Dividend distributed 135000 45000 270000 Preferred stock 90000 45000 135000 Common Stock 450000 135000 answers Divdidend Per share = dividend / Shares Out standing Year 1 Year 2 Year 3 Preferred stock (DPS) 3.00 1.50 4.50 Common Stock (DPS) 0.90 0.00 2.70 Preferred stock (DPS) Common Stock (DPS) 3.00000 0.90000 1.50000 0.00000 4.50000 2.70000