DeWine Corporation had the following stocks issued and outstanding when the board of directors proposed a $450,000 dividend: Preferred stock: 40,000 shares issued and 36,000 shares outstanding,8%, $30 par Common stock: 100,000 shares issued and 90,000 shares outstanding,$1 par Determine the amount of dividends each class of stock would receive given the assumptions provided below. Also - determine the divided per share for preferred and common stock in each of the scenarios. Situation 1: Preferred stock is noncumulative: Dividend per share – Situation 1: Situation 2: Preferred stock is cumulative (two years in arrears): Dividend per share – Situation 2: Situation 3: Preferred stock is cumulative(one year in arrears): Dividend per share – Situation 3
More Dividend Examples – Dividends in Arrears
DeWine Corporation had the following stocks issued and outstanding when the board of directors proposed a $450,000 dividend:
Common stock: 100,000 shares issued and 90,000 shares outstanding,$1 par
Determine the amount of dividends each class of stock would receive given the assumptions provided below. Also - determine the divided per share for preferred and common stock in each of the scenarios.
Situation 1: Preferred stock is noncumulative:
Dividend per share – Situation 1:
Situation 2: Preferred stock is cumulative (two years in arrears):
Dividend per share – Situation 2:
Situation 3: Preferred stock is cumulative(one year in arrears):
Dividend per share – Situation 3:
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