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1. Sabas company has 20,000 shares of $100 par, 1% non-cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were
1. Sabas company has 20,000 shares of $100 par, 1% non-cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends.
Year 1: $10,000
Year 2: $15,000
Year 3: $90,000
Determine the dividends per share for preferred and common stock for each year.
ANS:
Year 1 | Year 2 | Year 3 | |
Amount Distributed | |||
Prefferred Dividend(20,000 shares) | |||
Common Dividend(100,000 shares) | |||
Dividends per share: | |||
Preferred Stock | |||
Common Stock | |||
Current year preferred in arrears |
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