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Dividends Per Share Sandpiper Company has 30,000 shares of cumulative preferred 3% stock, $150 par and 50,000...

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Accounting

Dividends Per Share

Sandpiper Company has 30,000 shares of cumulative preferred 3%stock, $150 par and 50,000 shares of $20 par common stock. Thefollowing amounts were distributed as dividends:

Year 1$337,500
Year 267,500
Year 3405,000

Determine the dividends per share for preferred and common stockfor each year. Round all answers to two decimal places. If ananswer is zero, enter '0'.

Year 1Year 2Year 3
Preferred stock (Dividends per share)$$$
Common stock (Dividends per share)$$$

Answer & Explanation Solved by verified expert
4.0 Ratings (504 Votes)

Solution

1st Year 2nd Year 3rd Year
Preferred stock $                    4.50 $                  2.25 $                  6.75
Common stock $                    4.05 $                      -   $                  4.05

Working

Par Value per Preferred share Dividend rate Dividend per preffred share Number of preffered shares Preffered Dividend
Annual Prefrred Dividend: 150 3.00% $               4.500 30000 $         135,000.00
Year Total Cash dividend Paid Paid to Preferred Paid to common Dividends in arear at year-end
1 $       337,500.00 $     135,000.00 $ 202,500 $ 0
2 $         67,500.00 $       67,500.00 $ 0 $ 67,500
3 $       405,000.00 $     202,500.00 $ 202,500

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