A company had stock outstanding as follows during each of it

A company had stock outstanding as follows during each of its first three years of operations: 4,000 shares of 9%, $100 par, cumulative preferred stock and 31,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Round dividends per share to the nearest cent. Enter \"0\" if no dividends are paid.

Preferred

Common

Year

Dividends

Total

Per Share

Total

Per Share

		Preferred	Common
Year	Dividends	Total	Per Share	Total	Per Share
1	$27,000	$	$	$	$
2	36,000	$	$	$	$
3	58,820	$	$	$	$

Solution

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Year 1 Year 2 Year 3 Total Dividend Paid                 27,000.00           36,000.00               58,820.00 Preference Dividend to be paid = 4000 *100 *9%                 36,000.00           36,000.00               36,000.00 Preference Dividend Paid = Existing + arrears                 27,000.00           36,000.00               45,000.00 Dividend available for common stock                                -                            -                 13,820.00 Arrears of preference Dividend                   9,000.00             9,000.00                              -   Preferred Common Year Dividends Total Per Share Total Per Share 1                 27,000.00           27,000.00                         6.75                              -   2                 36,000.00           36,000.00                         9.00                              -   3                 58,820.00           45,000.00                       11.25               13,820.00                         0.45