The answer of the email previous expert was incorrect divide

dividends: $112,500 22,500 135,000 Year 1 Year 2 Year 3 Preferred stock (Dividends per -112500) x s( 22,500 x? and class of stock, rather than the total amount to be distributed to each class of stock Check hy work1 more Check My Wok unes

Solution

Ans.   

Preferred Stock (Dividend per Share)

Year 1 = $45000 / 10000 = $4.50

Year 2 = $22500 / 10000= $2.25

Year 3 =$67500 / 10000 = $6.75

Common Stock (Dividend per share)

Year 1 = $67500 / 50000 = $1.35

Year 2 = $0 / 50000 = $0.00

Year 3 = $67500 / 50000 = $1.35

Calculation

Year 1 = 10000 share x 150 x 3% = $45000 PD

$112500D - $45000P = $67500 C

Year 2 = $22500D - $22500P = $0 C

$22500D - $45000P = -22500 P

Year 3 = $45000+$$22500 = $67500 P

$135000D - $67500P = $67500 C