Question

Seacrest Company has 10,000 shares of cumulative preferred 3% stock, $150 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends:

Year 1	$112,500
Year 2	36,000
Year 3	135,000

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'.

	Preferred Stock (dividends per share)	Common Stock (dividends per share)
Year 1	$	$
Year 2	$	$
Year 3	$	$

Answer 1

	Preferred Stock (dividend per share)	Dividend Stock (dividend per share)
Year 1	$ 4.50	$ 1.35
Year 2	$ 3.60	0
Year 3	$ 4.50	$ 1.80
Workings:
	Preferred Stock	Dividend Stock	Total
	(i)	(ii)
Year 1	$      45,000	$      67,500	$       1,12,500
Year 2	$      36,000	0	$           36,000
Year 3	$      45,000	$      90,000	$       1,35,000
	Preferred Stock	Dividend Stock
	(i) / 10000	(ii) / 50000
Year 1	$           4.50	$           1.35
Year 2	$           3.60	0
Year 3	$           4.50	$           1.80