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?
