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    only1holy's Avatar
    only1holy Posts: 1, Reputation: 1
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    #1

    Sep 11, 2012, 05:19 PM
    How to calculate dividends/share for preferred & common stock
    ABC Co. paid dividends at the end of each year: 2011, $150,000; 2012, $240,000; and 2013, $560,000. Determine the amount of dividends per share paid on common and preferred stock for each year, assuming:

    300,000 shares of no-par common; 10,000 shares of $100 par, 9% non-cumulative preferred.

    Dividends = 10000 * 100 * 9% = 90000

    2011: $150,000 paid... 90000 to preferred first... leaving 60000 for common

    Note: I know how to figure out how much of the dividends is allocated to preferred and common holders. I was thrown off by the "no-par common" and the number of each class of stocks is not given. Can anyone tell me how to calculate how much of each class of stock(s) so that I can complete the calculations for dividends /share.

    Thank you!
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Sep 11, 2012, 08:29 PM
    Don't know what no-par common means there are 300000 shares after allocating the preference dividend divide the remainder by the number of shares
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