Question

Oceanic Company has 15,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $10 par common stock. Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places.

a) Preferred Stock: 2011 - $2.50, 2012 - $0.40, 2013 - $3.00; Common Stock: 2011 - $0.45, 2012 - $0, 2013 - $2.09
b) Preferred Stock: 2011 - $1.50, 2012 - $0.30, 2013 - $2.25; Common Stock: 2011 - $0.27, 2012 - $0, 2013 - $1.25
c) Preferred Stock: 2011 - $2.50, 2012 - $0.50, 2013 - $3.50; Common Stock: 2011 - $0.45, 2012 - $0, 2013 - $2.09
d) Preferred Stock: 2011 - $1.50, 2012 - $0.30, 2013 - $2.25; Common Stock: 2011 - $0.27, 2012 - $0, 2013 - $1.25

Answer 1

The dividends per share for preferred and common stock for each year are given for options a, b, c, and d.

Step-by-step explanation:

The question relates to the calculation of dividends per share for preferred and common stock for Oceanic Company. However, the question seems to contain some inconsistencies. Specifically, the dividend rates mentioned for each year do not appear to be directly calculable from the information provided about the cumulative preferred stock and common stock. The dividends per share for preferred and common stock for each year can be calculated as follows:

a) Preferred Stock:
2011 - $2.50
2012 - $0.40
2013 - $3.00

Common Stock:
2011 - $0.45
2012 - $0
2013 - $2.09

b) Preferred Stock:
2011 - $1.50
2012 - $0.30
2013 - $2.25

Common Stock:
2011 - $0.27
2012 - $0
2013 - $1.25

c) Preferred Stock:
2011 - $2.50
2012 - $0.50
2013 - $3.50

Common Stock:
2011 - $0.45
2012 - $0
2013 - $2.09

d) Preferred Stock:
2011 - $1.50
2012 - $0.30
2013 - $2.25

Common Stock:
2011 - $0.27
2012 - $0
2013 - $1.25