Question 5 ot coemplete Marked out of 200 Flag question Dane

Question 5 ot coemplete Marked out of 2.00 Flag question Dane River Company has 40,000 shares of cumulative preferred 2% stock. S60 par and 50,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1 Year 2 30,000 90,000 125,000 Year 3 Determine the dividends per share for common stock for each year Select one: a. Year 1 $1.20, Year 2- $1.65; Year 3 $0.75 ere to search 6

Solution

Dividend per share = Total dividend paid/total number of shares

Year 1 = 30000/90000 = 0.33

Year 2 = 90000/90000 = 1

Year 3 = 125000/90000 = 1.39