Question

Sabas Company has 33,000 shares of $100 par, 3% preferred stock and 94,000 shares of $50 par common stock issued and outstanding. The following amounts were distributed as dividends:

Year 1:$561,000

Year 2:500,000

Year 3:599,000

Determine the dividends per share for preferred and common stock for each year. If required, round your answers to two decimal places.

Dividends per shareYear 1Year 2Year 3

Preferred stock$$$

Common stock$$$

Answer 1

year a Dividend Distributed Dividend to preferred stock Dividend per preferred share Dividend to common stock Dividend per common share b c=33000*100*3% d=c/33000 e=b-c f=e/94000 shares 1 $ 5,61,000 99000 $ 3 $ 4,62,000 $ 4.91 2 $ 5,00,000 99000 $ 3 $ 4,01,000 $ 4.27 3 $ 5,99,000 99000 $ 3 $ 5,00,000 $ 5.32 Year 1 Preferred $ Common: $ Year 2 3 $ 4.91 $ Year 3 3 $ 4.27 $ 3 5.32