Question

Dividends Per Share

Seacrest Company has 15,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends:

Year 1	$22,500
Year 2	7,500
Year 3	45,000

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)	$	$	$

Answer 1

Stock	Year 1	Year 2	Year 3
Preferred stock:
Opening liability	-	-	7,500
Current year payable	15,000	15,000	15,000
Dividend paid	15,000	7,500	22,500
Closing liability	-	7,500	-
Per share dividend	1.00	0.50	1.50
Common stock:
Total dividends	22,500	7,500	45,000
Less paid to preferred stock	15,000	7,500	22,500
Common stock dividends	7,500	-	22,500
Per share dividend	0.15	0.00	0.45