Seacrest Company has 10000 shares of cumulative preferred 3

Seacrest Company has 10,000 shares of cumulative preferred 3% stock, $150 par and 50,000 shares of $25 par common stock. The following amounts were distributed as dividends:

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	$67,500
Year 2	18,000
Year 3	135,000

Solution

Annual preferred dividends = 10000*150*3%= $45000 Year 1: Preferred stock (Dividends per share) 4.5 =45000/10000 Common stock (Dividends per share) 0.45 =(67500-45000)/50000 Year 2: Preferred stock (Dividends per share) 1.8 =18000/10000 Common stock (Dividends per share) 0 Year 3: Preferred stock (Dividends per share) 7.2 =(27000+45000)/10000 Common stock (Dividends per share) 1.26 =(135000-45000-27000)/50000