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Sagot :
The dividends per share on each each class of stock for each of the four years are 0.90, 2.10, 1.50 and 1.50.
How do you calculate the dividends per share for four years?
Year 1
Preferred Stock (a) 40,000
Par Value (b) 75
Preferred Stock (c=a*b) 3,000,000
Percentage (d) 2%
Annual Dividends for Preferred Stock (e=c*d) 60,000
Dividends Declared (a) 36,000
Preference Dividends (b) 36,000
Allocated to Common Dividends (c=a-b) 0
To compute the dividends per share:
Common Preferred
Allocated Dividends (a) 0 36,000
Number of Shares (b) 100,000 40,000
Dividends per Share (c=a/b) 0 0.90
Year 2
Preferred Stock (a) 40,000
Par Value (b) 75
Preferred Stock (c=a*b) 3,000,000
Percentage (d) 2%
Annual Dividends for Preferred Stock (e=c*d) 60,000
Dividends Declared (a) 90,000
Annual Preference Dividends (b) 60,000
Balance(c=a-b) 30,000
Dividends in Arrears (60,000-36,000) (d) 24,000
Dividends for Common Stockholders (e=c-d) 6,000
Common Preferred
Allocated Dividends (a) 6,000 84,000
Number of Shares (b) 100.000 40,000
Dividends per Share (c=a/b) 0.06 2.10
Year 3
Preferred Stock (a) 40,000
Par Value (b) 75
Preferred Stock (c=a*b) 3,000,000
Percentage (d) 2%
Annual Dividends for Preferred Stock (e=c*d) 60,000
Dividends Declared (a) 115,000
Annual Preference Dividends (b) 60,000
Dividends for Common Stockholders (c=a-b) 55,000
Common Preferred
Allocated Dividends (a) 55,000 60,000
Number of Shares (b) 100.000 40,000
Dividends per Share (c=a/b) 0.55 1.50
Year 4
Preferred Stock (a) 40,000
Par Value (b) 75
Preferred Stock (c=a*b) 3,000,000
Percentage (d) 2%
Annual Dividends for Preferred Stock (e=c*d) 60,000
Dividends Declared (a) 140,000
Annual Preference Dividends (b) 60,000
Dividends for Common Stockholders (c=a-b) 80,000
Common Preferred
Allocated Dividends (a) 80,000 60,000
Number of Shares (b) 100.000 40,000
Dividends per Share (c=a/b) 0.80 1.50
To know more about Dividends for Preferred Stock, visit:
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