Homework SourseLarkspur Company has outstanding 2400 shares of 100 par 6 pr
Larkspur Company has outstanding 2,400 shares of $100 par, 6% preferred stock and 14,800 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years.
Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 2 decimal places, e.g. $6.85.)
Assumptions Preferred, noncumulative, Preferred, cumulative, and fully participating and nonparticipating Year Paid-out Preferred 2015 $10,900$ 2016 $28,000 2017 $60,100 2018 $79,200 Common Preferred CommonSolution
Year Paid-out (a) (b) Preferred, noncumulative and nonparticipating Preferred, cumulative and fully participating Preferred Common Preferred Common 2015 10,900.00 10,900.00 - 10,900.00 - 2016 28,000.00 14,400.00 13,600.00 18,654.64 9,345.36 2017 60,100.00 14,400.00 45,700.00 28,268.04 17,431.96 2018 79,200.00 14,400.00 64,800.00 40,082.47 24,717.53 Preference Dividend per annum = 2,400 Shares X $100 X 6% = $14,400 Case (b) 2016 P/S C/S Total P/S - Arrears 3,500.00 - 3,500.00 P/S - Curent 14,400.00 - 14,400.00 C/S - 14,800 Shares X $10 X 6% 8,880.00 8,880.00 Balance - 240:148 754.64 465.36 1,220.00 Total 18,654.64 9,345.36 28,000.00 2017 P/S C/S Total P/S - Curent 14,400.00 - 14,400.00 C/S - 14,800 Shares X $10 X 6% 8,880.00 8,880.00 Balance - 240:148 13,868.04 8,551.96 22,420.00 Total 28,268.04 17,431.96 45,700.00 2018 P/S C/S Total P/S - Curent 14,400.00 - 14,400.00 C/S - 14,800 Shares X $10 X 6% 8,880.00 8,880.00 Balance - 240:148 25,682.47 15,837.53 41,520.00 Total 40,082.47 24,717.53 64,800.00
