Dividends Per Share 1.) Oceanic Company has 10,000 shares of cumulative preferre
ID: 2422933 • Letter: D
Question
Dividends Per Share
1.) Oceanic Company has 10,000 shares of cumulative preferred 1% stock, $50 The monetary amount printed on a stock certificate.par and 50,000 shares of $20 par The stock outstanding when a corporation has issued only one class of stock.common stock. The following amounts were distributed as dividends:
Year 1: $10,000
Year 2: 2,500
Year 3: 15,000
Determine the dividends per share for A class of stock with preferential rights over common stock.preferred and The stock outstanding when a corporation has issued only one class of stock.common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.
Year 1: $ Year 1:
Year 2: $ Year 2:
Year 3: $ Year 3:
Dividends Per Share
2. Fairmount Inc., a developer of radiology equipment, has Shares of ownership of a corporation.stock outstanding as follows: 24,000 shares of cumulative preferred 3% stock, $150 The monetary amount printed on a stock certificate.par, and 80,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $72,480; second year, $100,560; third year, $188,560; fourth year, $212,800.
Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".
Preferred stock (dividend per share)
1st year: $___ 2nd year: $___ 3rd year: $___ 4th year: $___
Common stock (dividend per share)
1st year: $___ 2nd year: $ ___ 3rd year: $ ___ 4th year: $___
3. Michelangelo Inc., a software development firm, has Shares of ownership of a corporation.stock outstanding as follows: 25,000 shares of cumulative 4%, A class of stock with preferential rights over common stock.preferred stock of $20 The monetary amount printed on a stock certificate.par, and 31,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $7,500; second year, $10,500; third year, $69,280; fourth year, $112,690.
Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".
Preferred stock (dividend per share)
1st year: $___ 2nd year: $___ 3rd year: $___ 4th year: $___
Common stock (dividend per share)
1st year: $___ 2nd year: $___ 3rd year: $___ 4th year: $___
Preferred Stock(dividend per share) Common Stock
(dividend per share)
Explanation / Answer
1. Year Dividend Preferred stock dividend per share common stock dividned per share 1 $10000 (10000share *1% *$50) =$5000 /10000 (10000-5000)=5000/50000share
= $0.5 =$0.1
2 $2500 (only)$2500 / 10000 shares
= $0.25 $0(no dividend is available )
3 $15000 $2500(of year 2) + 5000 /10000share [15000-(2500+5000)] /50000 share
= 7500/10000 =7500 /50000
= $0.75 =$0.15
Note:- In cumulative preferred stock dividend , if any dividend is distributed ,it will be received by preferred stock holder firstly , then by commonstockholder