Question

A company had stock outstanding as follows during each of its first 3 years of operations: 2,000 shares of 9%,5100 par, cumulative preferred stock and 35,000 shares of $10 par common stock. The amounts distributed as dividends are presented in the foliowing-schedule. - Determine the total and per-share dividends for each class of stock for each year by completing the schedule. If necessary, round dividends per share to the nearest cent. If your answer is zero, please enter " 0 ".

Answer 1

Step-by-step explanation:

To determine the total and per-share dividends for each class of stock for each year, we will need to complete the schedule using the given information.

Here is the schedule:

| Year | Preferred Stock Dividend | Common Stock Dividend |

|------|-------------------------|-----------------------|

| 1 | | |

| 2 | | |

| 3 | | |

Given information:

Preferred Stock:

- 2,000 shares

- 9% dividend rate

- $100 par value

Common Stock:

- 35,000 shares

- $10 par value

Now, let's calculate the dividends for each year:

Year 1:

The preferred stock dividend is calculated as:

2,000 shares * 9% dividend rate * $100 par value = $18,000

The common stock dividend for year 1 is not given, so we'll assume it to be zero.

Total dividends for each class of stock in year 1:

Preferred Stock: $18,000

Common Stock: 0

Per-share dividends for each class of stock in year 1:

Preferred Stock: $18,000 / 2,000 shares = $9.00 per share

Common Stock: $0.00 per share

Year 2:

The preferred stock dividend is cumulative, so any unpaid dividends from the prior year will accumulate. As the prior year's dividends for preferred stock were $18,000, this amount will be paid in year 2.

The common stock dividend for year 2 is not given, so we'll assume it to be zero.

Total dividends for each class of stock in year 2:

Preferred Stock: $18,000

Common Stock: 0

Per-share dividends for each class of stock in year 2:

Preferred Stock: $18,000 / 2,000 shares = $9.00 per share

Common Stock: $0.00 per share

Year 3:

The preferred stock dividend is cumulative, so any unpaid dividends from prior years will accumulate. As the prior years' dividends for preferred stock were $18,000 in each year, this amount will be paid in year 3.

The common stock dividend for year 3 is provided in the schedule, so we'll fill in that information. However, the table is not given, so we cannot provide the exact values. Please provide the dividend amounts for the common stock in year 3, and I will be able to provide the final calculations for year 3.

Total dividends for each class of stock in year 3:

Preferred Stock: $18,000

Common Stock: ?

Per-share dividends for each class of stock in year 3:

Preferred Stock: $18,000 / 2,000 shares = $9.00 per share

Common Stock: ? per share

Please provide the dividend amounts for the common stock in year 3, and I will complete the calculations for year 3.