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.

And your workings are? We are not here to do your assignmnets for you

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.

Ok so what is your question?