Determine the dividends per share for preferred-common stock


Oceanic Company has 20,000 shares of cumulative 4% preferred stock of $150 par and 50,000 shares of $5 par common stock. The following amounts were distributed as dividends:

Year 1 $240,000
Year 2 $40,000
Year 3 $240,000

Determine the dividends per share for preferred and common stock for each year. Round all answers to nearest whole cent. If an answer is zero, enter '0'

Preferred Stock Common Stock
Year 1 4.00 3.20
Year 2 2.00 0.00
Year 3 6.00 2.40

How did they come up wth these answers? Please help

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Accounting Basics: Determine the dividends per share for preferred-common stock
Reference No:- TGS090424

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