For Sandpiper Company: Year 1 dividends per share were $3.00 for preferred stock and $0.90 for common stock. Year 2 dividends per share were $3.00 for preferred stock and $0.00 for common stock. Year 3 dividends per share were $3.00 for preferred stock and $3.60 for common stock.
To calculate the dividends per share for preferred and common stock for each year, we need to follow these steps:
Year 1:
Total dividends = $135,000
Dividends for preferred stock = 0.03 * 100 * 30,000 = $90,000
Dividends for common stock = $135,000 - $90,000 = $45,000
Dividends per share for preferred stock = $90,000 / 30,000 = $3.00
Dividends per share for common stock = $45,000 / 50,000 = $0.90
Year 2:
Total dividends = $45,000
Dividends for preferred stock = 0.03 * 100 * 30,000 = $90,000
Dividends for common stock = $45,000 - $90,000 = $0 (It's zero in this case)
Dividends per share for preferred stock = $90,000 / 30,000 = $3.00
Dividends per share for common stock = $0 / 50,000 = $0.00
Year 3:
Total dividends = $270,000
Dividends for preferred stock = 0.03 * 100 * 30,000 = $90,000
Dividends for common stock = $270,000 - $90,000 = $180,000
Dividends per share for preferred stock = $90,000 / 30,000 = $3.00
Dividends per share for common stock = $180,000 / 50,000 = $3.60
So, the dividends per share for each year are as follows:
Preferred Stock Common Stock
Year 1: $3.00 Year 1: $0.90
Year 2: $3.00 Year 2: $0.00
Year 3: $3.00 Year 3: $3.60
Complete question:
Sandpiper Company has 30,000 shares of cumulative preferred 3% stock, $100 par and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends: Year 1 $135,000 Year 2 45,000 270,000 Year 3 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 'o'. Preferred Stock Common Stock (dividends per share) (dividends per share) Year 1 Year 2 Year 3 A