Question
Dividend Distribution Rydon Corporation began business on March 1, 2013. At that time, it issued 20,000 shares of $60 par value, seven percent cumulative preferred
Dividend Distribution
Rydon Corporation began business on March 1, 2013. At that time, it issued 20,000 shares of $60 par value, seven percent cumulative preferred stock and 100,000 shares of $5 par value common stock. Through the end of 2015, there had been no change in the number of preferred and common shares outstanding.
Required
a. Assume that Rydon declared dividends of $0 in 2013, $183,000 in 2014, and $200,000 in 2015. Calculate the total dividends and the dividends per share paid to each class of stock in 2013, 2014, and 2015. Round to two decimal places.
| Year | Preferred Stock | Common Stock | Preferred per share | Common per share |
|---|---|---|---|---|
| 2013 | Answer
| Answer
| Answer
| Answer
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| 2014 | Answer
| Answer
| Answer
| Answer
|
| 2015 | Answer
| Answer
| Answer
| Answer
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b. Assume that Rydon declared dividends of $0 in 2013, $84,000 in 2014, and $150,000 in 2015. Calculate the total dividends and the dividends per share paid to each class of stock in 2013, 2014, and 2015. Round to two decimal places.
| Year | Preferred Stock | Common Stock | Preferred per share | Common per share |
|---|---|---|---|---|
| 2013 | Answer
| Answer
| Answer
| Answer
|
| 2014 | Answer
| Answer
| Answer
| Answer
|
| 2015 | Answer
| Answer
| Answer
| Answer
|
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
