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kassav · Sep 14, 2009, 01:14 PM

A company has declared the following annual dividend over a six year period 2003, $21,000. 2004 $50,000. 2005 $15,000. 2006 $80,000. 2007 $90,000. 2008 $140,000. During the entire period the outstanding stock of the company was composed of 10,000. Shares of 4% preferred stock, $75 par, and 100,000 shares of common stock $10 par.
1- calculate total dividend of the per share dividend declared on each class of stock over the 6yrs period.
2-calculate the average per share for each class of stock for the six year
3-assuming that the preferred stock was sold at $80 and common stock was sold at par at the beginning, calculate average percentage return on initial shareholders based on annual dividend per shared (a) preferred stock and (b) for common stock.

ArcSine · Sep 15, 2009, 04:44 AM

Kassav, after reading the forum's homework help rules, post back with your work on the problem, showing where you need help.

MsShawntae · Apr 10, 2010, 02:40 PM

0

okunola · Oct 16, 2010, 05:22 AM

1/100*525000

pready · Oct 16, 2010, 05:46 AM

To calculate dividends for preferrend stock you take the par value of the stock * the percentage amount. Subtract this number from the total dividends to get dividends available to common shareholders. Divide the dividends available to common shareholders by the number of common shares outstanding to get the dividends per common share of stock.

renaewhite · Aug 23, 2011, 06:05 PM

Calculate the preferred and common dividend per share
Common stock Shares Div. or Par ***. Dividend declared Arrears
4,000,000 1,000,000 $100 4% yes 14,000,000 1 year
What is the preferred Div./Share and Common Div./share

renaewhite · Aug 23, 2011, 06:12 PM

I want help understanding calculateing dividends for preferrend stock
Here's my question

Calculate the preferred and common dividend per share
Common stock Shares Div. or Par ***. Dividend declared Arrears
4,000,000 1,000,000 $100 4% yes 14,000,000 1 year
What is the preferred Div./Share and Common Div./share

pready · Aug 25, 2011, 02:27 PM

$75 par value preferred shares * 4% * 10,000 shares preferred = $30,000 preferred dividends, which is calcualted from the formula I gave you.

Dividend per share of preferred stock = $75 * 4% = $3

Now you should be able to work the rest of your problem.

mgarnica6617 · Jun 13, 2012, 08:58 PM

Originally Posted by pready

$75 par value preferred shares * 4% * 10,000 shares preferred = $30,000 preferred dividends, which is calcualted from the formula I gave you.

Dividend per share of preferred stock = $75 * 4% = $3

Now you should be able to work the rest of your problem.

Did you ever figure it out if you did let me know asp