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Home > Business & Careers > Accounting   »   Calculating Preferred Stock and Common Stock Dividend

 
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Old Jul 13, 2008, 02:34 PM
ATriplett
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Calculating Preferred Stock and Common Stock Dividend

I want help understanding calculating dividends on preferred stock, here is the question:

Golf-Easy Company has 10,000 shares of 3% preferred stock of $50 par and 25,000 shares of $100 par common stock. The following amounts were distributed as dividends:

Year 1 $40,000
Year 2 10,000
Year 3 120,000

Determine the dividends per share for perferred and common stock for each year. I am actually trying to understand the formula to use for this?

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