Question

Dividends Per Share Sandpiper Company has 15,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends: 20Y1 20Y2 20Y3 Determine the dividends per share for preferred and common stock for each year. Round all answer to two decimal places. If an answer is zero, enter '0'. 20Y1 2012 $30,000 6,000 45,000 20Y3 Preferred Stock (dividends per share) Common Stock (dividends per share) LA​

Answer 1

The dividends per share for the preferred and common stock for each year are calculated by dividing the total dividends distributed by the number of shares. In 20Y1, the dividends per share are $2 for the preferred stock and $0.12 for the common stock. In 20Y3, the dividends per share are $3 for the preferred stock and $0 for the common stock.

Step-by-step explanation:

To determine the dividends per share for the preferred and common stock for each year, we need to calculate the total dividends distributed and divide it by the number of shares. In 20Y1, the total dividends distributed were $30,000 for the preferred stock and $6,000 for the common stock. Dividing these amounts by the number of shares, we get dividends per share of $2 for the preferred stock and $0.12 for the common stock in 20Y1.

In 20Y3, the total dividends distributed were $45,000 for the preferred stock and $0 for the common stock. Dividing these amounts by the number of shares, we get dividends per share of $3 for the preferred stock and $0 for the common stock in 20Y3.

Answer 2

Answer: To calculate the dividends per share for preferred and common stock for each year, we need to divide the total dividends by the number of shares for each type of stock.

20Y1:

Preferred Stock: $30,000 / 15,000 shares = $2.00 per share

Common Stock: $6,000 / 50,000 shares = $0.12 per share

20Y2:

Preferred Stock: $30,000 / 15,000 shares = $2.00 per share (cumulative preferred stock means that if the company misses a dividend, they still have to pay it in the future, so the dividends per share remain the same)

Common Stock: $45,000 / 50,000 shares = $0.90 per share

20Y3:

Preferred Stock: $30,000 / 15,000 shares = $2.00 per share

Common Stock: $0 (there is no information about dividends for the common stock in 20Y3)

So, the dividends per share for each year would be:

20Y1:

Preferred Stock: $2.00 per share

Common Stock: $0.12 per share

20Y2:

Preferred Stock: $2.00 per share

Common Stock: $0.90 per share

20Y3:

Preferred Stock: $2.00 per share

Common Stock: $0.00 per share

Step-by-step explanation: