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Calculate the total dividends and per-share dividends declared on each class of stock for each of the six years.

I can't seem to come up with the correct answers. Could you please help? I need answers in word format to read on my computer. Thanks

Question:

Dividends over a six year period include
2002, $40,000
2003, $18,000
2004, $24,000
2005, $27,000
2006, $65,000
2007, $54,000

During this entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative, nonparticipating, 6% preferred stock, $20 par.
And 40,000 shares of common stock, $1 par.

I need to calculate the total dividends and per-share dividends declared on each class of stock for each of the six years.

Solution Preview

The dividend on preferred stock will be @6% for 25000 shares of $20 each i.e. $1.2 per share or $30,000
Out of the total dividend paid first the the dividend on the preferred stock will be paid and then the dividend on the common stock will be paid. If the total dividedn paid in a particular year is less than $30,000 (dividend required to be paid on preferred ...

Solution Summary

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