Dividends Per ShareSeacrest Company has 25,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends:Year 1$50,000Year 220,000Year 375,000Determine 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'. Year 1Year 2Year 3Preferred stock (Dividends per share)$$$Common stock (Dividends per share)$$$

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Asked Nov 7, 2019
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Dividends Per Share

Seacrest Company has 25,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends:

Year 1 $50,000
Year 2 20,000
Year 3 75,000

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'.

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

Step 1

Dividends:

This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

Step 2

Compute the dividends per share for preferred and&...

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Dividends for Dividends Dividends per Total Dividends Year dividend preferred for common share for for common distributed share shares preferred stock stock S50,000 $ 20,000 31 S 25,000 1.00 1 25,000 20,000 20,000 0.5 2 0.80 0 S 75,000 S55,000 0.80 1.1

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