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    curious1724's Avatar
    curious1724 Posts: 2, Reputation: 1
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    #1

    Apr 9, 2015, 09:59 PM
    Accounts
    Faith Co. Ltd has an authorized capital stock of 450,000, $60 par value, 15% preferred stock and 200,000, $20 common stock. During the year 2013 the company issued 200,000 fully paid shares of preferred stock at par, and 100,000 fully paid shares of common stock at $25. The company also declared cash dividend on preferred stock and a $4 per share dividend on common stock.

    1. Calculate and show your workings for the dividend to be paid on common stock


    2. Calculate and show your workings for the dividend to be paid on preferred stock.


    3. Calculate and show your workings for the value for the preferred stock issued.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Apr 10, 2015, 06:07 AM
    And your workings are? We are not here to do your assignmnets for you
    curious1724's Avatar
    curious1724 Posts: 2, Reputation: 1
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    #3

    Apr 12, 2015, 02:51 PM
    common stock value = 100,000 x $20 = $2000,000
    share premimum = 100,000 x (25-20) = 500,000

    preferred stock value = 200,000 x 60 = 12,000,000

    dividend on common stock = 100,000 x 4.00 = 400,000
    dividend on preferred stock = 200,000 x (60 x 15%) = 1800,000

    this is working I had.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #4

    Apr 12, 2015, 06:53 PM
    Ok so what is your question?
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