I need help with this problem and understad how the answers came about. i have t

Question

I need help with this problem and understad how the answers came about. i have tried and keep getting it wrong

John Dear Co. is a heavy equipment and lawn care products manufacturer located in Illinois. John Dear is publicly owned, and has declared the following dividends over a six year period:

20X1, $ 240,000; 20X2, $ 1,200,000; 20X3, $ 2,200,000; 20X4, $ 0; 20X5, $ 120,000; and 20X6, $ 4,200,000. During the entire period, the outstanding stock of the company was composed of 100,000 shares of cumulative, nonparticipating 5%, $10 Par Preferred stock and 1,000,000 shares of common stock, $ 1 par.

Calculate the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on Jan. 1, 20X1.

Round to the nearest cent.

                                                Preferred Dividends                         Common Dividends

Year    Total Dividends           Total          Per Share     Arrears        Total         Per Share     

20X1                    

20X2  

20X3                      

20X4

20X5

20X6

Explanation / Answer

Dividends Preferred Pref. per share Common Common per share Total Dividends 20X1 50000 0.5 240000 0.24 290000 20X2 50000 0.5 1200000 1.2 1250000 20X3 50000 0.5 2200000 2.2 2250000 20X4 50000 0.5 0 0 50000 20X5 50000 0.5 120000 0.12 170000 20X6 50000 0.5 4200000 4.2 4250000

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---