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Dividends Question

dividends

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Rengie Galo
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14 views

Dividends Question

dividends

Uploaded by

Rengie Galo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Stockholders' equity
Paid-in capital
Preferred stock, cumulative, 9,500 shares authorized, 5,700 shares issued and
587,100
outstanding
Common stock, no par, 748,707 shares authorized, 579,000 shares issued 2,895,000
Total paid-in capital 3,482,100
Retained earnings 1,200,000
Total paid-in capital and retained earnings 4,682,100
Less: Treasury stock (6,800 common shares) 36,267
Total stockholders' equity 4,645,833

What is the par value of the preferred stock?________

2. Windbom Company has 30,000 shares of cumulative preferred 2% stock, 50 par and 50,000
shares of 30 par common stock. The following amounts were distributed as dividends:

Year 1= 50,000

Year 2= 24,000

Year 3= 50,000

Determine the dividends per share for preferred and common stock for each year. Round all
answers to decimal places. ____________

3. At the beginning of Year 1, Emily Corporation issued 10,000 shares of 100 par, 5%,
cumulative, preferred stock for 110 per share. No dividends have been paid to preferred
shareholders in Year 1 or Year 2.

What amount of dividends will Emily Corporation pay to preferred shareholders in Year 3 if
Emily pays 1,000,000 in dividends in year3? _________

4. The balance sheet caption for common stock is: Common stock, 10 par value, 7,000,000
shares authorized, 5,700,000 shares issued, 5,500,000 shares outstanding.

a. Calculate the total amount of a cash dividend of 1.00 per share. __________

5. Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred


stock with a 10 par value and 3,000 shares of common stock with a 1 par value. During the first
three years of operation, the corporation declared and paid the following total cash dividends.
Dividend Declared
Year 1 0
Year 2 6,000
Year 3 32,000

The amount of dividends paid to preferred and common shareholders in Year 2 is? ___________

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