Dividends Per Share Oceanic Company has 10,000 shares of cumulative preferred 1%
ID: 2423186 • Letter: D
Question
Dividends Per Share
Oceanic Company has 10,000 shares of cumulative preferred 1% stock, $50 par and 50,000 shares of $20 par 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 preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.
Preferred Stock
(dividend per share)
Common Stock
(dividend per share)
Year 1
$
$
Year 2
$
$
Year 3
$
$
Year 1
$10,000
Year 2
2,500
Year 3
15,000
Explanation / Answer
(All figures in $)
____________________________________________________________________________________________
YEAR Dividend distributed Dividend on Pref. stock Distributed to pref. stock Dividend on common stock
Year 1 10,000 5,000 5,000 5,000
Year 2 2,500 5,000 2,500 --
Year 3 15,000 ( 2500+5000) =7,500 7,500 7,500 _______
3 7,500 10,000 0.75________________
DIVIDEND PER SHARE ON COMMON STOCK:
_____________________________________________________________________________________
YEAR COMMON STOCK DIVIDEND ($) NO. OF SHARES DIVIDEND PER SHARE ($)
Year 2 -- 50,000 0
Year 3 7,500 50,000 0.15________________