contestada

Saville Company has 10,000 shares of $100 par, 4% cumulative preferred stock and 100,000 shares of
$10 par common stock. All past dividends for preferred shareholders have been paid. Dividends
totaling $80,000 have been declared.
Determine the dividends per share for preferred and common stock for the year.
Question 10 options:
$4.00 and $4.00
$4.00 and $0.40
$2.00 and $0.40
$2.00 and $4.00

Respuesta :

Answer:

$4.00 and $0.40

Step-by-step explanation:

Preferred dividend = $100 x 4% = $4 per share

$4 x 10,000 shares = $40,000

$80,000 paid - $40,000 preferred = $40,000 common dividend

$40,000 / 100,000 common shares = $0.40 per share

abiolataiwo2015

The dividends per share for preferred and common stock for the year is: $4.00 and $0.40.

Dividends per share for preferred and common stock

Dividends per share for preferred = $100 x0.04

Dividends per share for preferred = $4 per share

Common dividend=$80,000 -($4 x 10,000 shares)

Common dividend=$80,000 - $40,000

Common dividend=$40,000

Dividends per share for common stock=$40,000 / 100,000

Dividends per share for common stock = $0.40 per share

Inconclusion the dividends per share for preferred and common stock for the year is: $4.00 and $0.40.

Learn more about dividends per share for preferred and common stock here:https://brainly.com/question/10718788

Otras preguntas