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    rlcunningham's Avatar
    rlcunningham Posts: 1, Reputation: 1
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    #1

    Apr 17, 2009, 05:04 AM
    Calculations of average issuing prices / dividends declared
    How do you calculate the average issue price per share of preferred stock?

    Also how do I calculate the amount of dividend declared on each share of common stock
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Apr 18, 2009, 11:47 AM
    How do you calculate the average issue price per share of preferred stock?
    Take the total dollar value of the preferred and add any additional paid-in capital for it, if it exists. Then divide by issued shares. If there's not additional paid-in capital, it would just be par or stated value, in which case I wouldn't think they'd be asking.

    Also how do I calculate the amount of dividend declared on each share of common stock
    If by "dividend declared one each share" you mean "dividends per share," then it's just the total dividends divided by common shares outstanding. However, the problem should call it "dividends per share." So either you're paraphrasing it (don't) or they are wanting you to actually calculate the amount of dividends being declared, and that would depend entirely on what information you have and what the problem is wanting you to do, so no way to answer that.
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