Ask Experts Questions for FREE Help !
Ask
    laroado85's Avatar
    laroado85 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 8, 2007, 02:10 PM
    Calculating Preferred Stock Dividends
    I have accounting problem that I am stuck on. Would appreciate anybody's help!
    The problem reads:
    Sunland Company had net income of $250,000 during the year. There were 200,000 common shares outstanding during the year. There were 1,000 shares of $100 par value, 8% preferred stock outstanding during the year. Determine the basic earnings per share.

    I know the formula for basic earnign per share, but with the bold information, how would I find the preferred stock dividend? Thank you
    pritty1979's Avatar
    pritty1979 Posts: 3, Reputation: 1
    New Member
    		  
    #2

    Sep 19, 2010, 11:29 PM
    Dividends are 1000*8% = $80 preferred dividend

    EPS=(250,000 - 80)/200,000 = $1.25
    sammy145's Avatar
    sammy145 Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Mar 29, 2013, 06:24 AM
    Dividends are (1000*$100)8% = $8000 preferred dividend

    EPS=(250,000 - 8000)/200,000 = $1.21
    vpaytov01's Avatar
    vpaytov01 Posts: 1, Reputation: 1
    New Member
    		  
    #4

    Aug 13, 2013, 12:20 AM
    A preferred stock paying a 8.7% dividend on a $129 par value.
    The cost of the preferred stock is % (round to two decimal places).
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Calculating dividends paid to preferred stockholders [ 1 Answers ]

How does the 9% compute in determining the preferred stock and the common stock? :confused: Here's the way the example appears: 9% cummulative preferred stock, $100 par value authorized 100,000 shares, issued 50,000.. . $5,000,000 Common stock, $5 par value, authorized 3 million...

Calculating dividends [ 2 Answers ]

If I have stock outstanding of 100,000 shares of 2% cumulative, nonparticipating preferred stock of $20 par, and 50,000 share of $100 par common, how do I calculate the dividends per share?

Calculating dividends [ 1 Answers ]

Don't even know where to start. Is there an equation I am suppose to be using or is it really easy and I am just not getting it. Here is the problem I am suppose to figure it for Using the information for Dean Corporation, calculate the amount of dividends Dean most likely paid to common...

View more questions Search