Waco Company has 10,000 shares of 2% cumulative preferred stock of $25 par and 25,000 shares of $45 par common stock. The following amounts were distributed as dividends:
Year 1 $15,000
Year 2 $3,000
Year 3 $40,000
Determine the dividends per share for preferred and common stock for each year.

I attepmted to do the calculations.
Preferred calculations:
2% x 25 = 0.5
10000 x 0.5 = 5000
10000/10000 = $1 per pref share
10000 x 0.5 = 5000

Common Calculations:
15000-5000=10000
number of shares 25,000 so $10000 is paid to 25,000 shareholders $10000/25000=0.4 per share
year 2 amount not sufficient and no dividends for common
year 3: 40000-5000=35000; dividends per share 35000/25000=1.4 per share

amount distributed:
yr1: 15000-5000=10000
yr2: 3,000-3000=0
yr3: 40,000-5000=35,000

pref dividends:
yr1: 5000
yr2: 3000
yr3: 5000

common dividends:
yr1: 10,000
yr2: 0
yr3: 35,000

Dividends per share:
pref stock:
yr1: 0.50
yr2: 1.00
yr3: 0.50

common stock:
yr1: 0.4
yr2: 0
yr3: 1.4

I know this is a week old and not sure if you still need help. (Been busy and haven't been around.)

You've got most of the concept right. You're calculating dividends per share right (the division by the # of shares), and you calculated the preferred dividend requirement of $5000 right. Basically nearly everything is there.

However, the preferred stock is cumulative, which means you have to make up for anything that didn't get paid of the $5000. The first year that isn't an issue. But the second year there is only $3000 in dividends. So preferred only gets $3000, as you did. But the $2000 that is missing goes into arrears. That has to be made up for in a future year. So going into the third year, you have to pay them the $5000 for the current year, and in addition, pay the $2000 from arrears that has to be made up, for a total of $7000. That of course will also change what is left over for common.

Make that one little change (and of course the dividends per share that goes with the change), and you'll have it.

Seacrest Company has 15,000 shares of 1% cumulative preferred stock of $150 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends:

Year 1 $45,000
Year 2 18,000
Year 3 67,500

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

For preferred dividends simply take your number of shares of 150,000 times your percentage of 1% times your par value of $150 to get your preferred dividends.

This is the amount for your preferred dividends to be paid each year. If you do not have enough dividends to pay in one year you take the difference in the next year.

The amount of dividends to common shareholders is simply your total dividends minus your dividends to preferred shareholders.