**Dividends Calculation for Preferred and Common Stockholders****Given:**- 27,000 shares cumulative preferred stock ($5.25 dividend per share)- 54,000 shares common stock- Dividends paid: - 2016: $10,800 - 2017: $0 - 2018: $440,000**Question:**- How much will preferred and common stockholders receive each year? (Leave no cells blank - be certain to enter "0" wherever required.)**Table: Dividends Received by Preferred and Common Stockholders**| | 2016 | 2017 | 2018 ||---------------------|-----------|----------|-----------|| **Preferred stockholders** | _________ | ________ | _________ || **Common stockholders** | _________ | ________ | _________ |**Explanation:**- **Preferred stockholders:** They are entitled to a cumulative dividend of $5.25 per share each year. If they do not receive their full dividends in one year, the unpaid dividends carry forward to the next year.- **Common stockholders:** They only receive dividends after the preferred stockholders have been paid their due cumulative dividends for the current and any previous years.**Steps to Calculate:**1. Calculate the annual dividend due to preferred stockholders: - Annual dividend per preferred share = $5.25 - Total preferred shares = 27,000 - Total annual preferred dividends = 27,000 x $5.25 = $141,7502. Distribute the dividends paid among preferred and common stockholders for each year: - **2016:** - Total dividends paid: $10,800 - Since the total is less than the preferred dividend requirement of $141,750, all $10,800 goes to preferred stockholders. - Shortfall of preferred dividends = $141,750 - $10,800 = $130,950 carried forward to 2017. - **2017:** - Total dividends paid: $0 - Preferred dividend shortfall: $130,950 + $141,750 (current year) = $272,700 carried forward to 2018. - **2018:** - Total dividends paid: $440,000 - Preferred dividend requirement = $272,

Solution:- Dividend is the amount of return granted to shareholders of a company.

Given: 27,000 shares cumulative preferred stock ($5.25 dividend per share): 54,000 shares common stock. Dividends paid: 2016, $10,800; 2017, 0; and 2018, $440,000. How much will preferred and common stockholders receive each year? (Leave no cells blank - be certain to enter "0" wherever required.) 2016 2017 2018 Preferred stockholders Common stockholders

Given: 27,000 shares cumulative preferred stock ($5.25 dividend per share): 54,000 shares common stock. Dividends paid: 2016, $10,800; 2017, 0; and 2018, $440,000. How much will preferred and common stockholders receive each year? (Leave no cells blank - be certain to enter "0" wherever required.) 2016 2017 2018 Preferred stockholders Common stockholders

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Belltower, Inc. has net income for 2016 of $370,000. At January 1, 2016, the company had outstanding 54,000 shares of $50 par value common stock and 10,000 shares of 6%, $100 par value cumulative preferred stock. On September 1, 2016, an additional 18,000 shares of common stock were issued.What is the earnings per share for 2016 (to the nearest cent)? Question 14 options: A) $4.44 B) $6.17 C) $4.31 D) $5.17
Preferred shares, $4.55 non-cumulative, 52,000 shares authorized and issued* $ 3,328,000 Common shares, 87,000 shares authorized and issued* 1,392,000 *All shares were issued during 2018. 2. Calculate the dividends paid per share to both the preferred and the common shares in 2020. (Round the final answers to 2 decimal places.)
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Assume the following data relative to ABC Corporation for 2016 is available: Net Income $1,400,000 Transactions in common shares: Jan 1, 2016 Beginning number: 500,000 March 1, 2016 Purchased treasury shares 60,000 June 1,2016 Stock split 2 for 1 Nov 1, 2016 Issuance of new shares 120,000 8% Cumulative Preferred Stock Sold at par, convertible into 200,000 shares as adjusted for stock split $1,000,000 Stock Options-60,000 options Exercisable at the option price of $25 per share. $30 average market price in 2016, $20 year end marke price(market price and option price adjusted for stock split) 4. What is Diluted EPS per share?
what are the dividends allocated to common stock? check pic
Ex8: A company was organized in January 2016 and has 15,000 shares of $12 par value, 20%, nonparticipating preferred stock outstanding and 50,000 shares of $7 par value common stock outstanding. It has declared and paid cash dividends each year as shown below. Calculate the total dividends distributed to each class of stockholder under each of the assumptions given. 2016 2017 $20,000 $30,000 $60,000 2018 Required: Complete the amount of total dividends allocated to each class of stock during 2016-2018. Cumulative: Year Preferred Common 2016 2017 2018. Non-Cumulative: Year Preferred Common 2016 2017 2018 To calculate the total dividends distributed to each class of stockholder under each assumption, we need to consider whether the preferred stock is cumulative or non-cumulative. Here are the calculations for both scenarios: 1. Cumulative Preferred Stock: Year 2016:
1. What amount should be reported as basic earnings per share for 2017? 2. What is the total number of potential ordinary shares? 3. What amount should be reported as diluted earnings per share for 2018?
Analyzing and Interpreting Stockholders' Equity and EPS Following is the stockholders' equity section of the balance sheet for The Procter & Gamble Company along with selected earnings and dividend data. For simplicity, balances for noncontrolling interests have been left out of income and shareholders' equity information. $ millions except per share amounts 2014 2013 Net earnings attributable to Procter & Gamble shareholders $11,156 $11,797 Common dividends 5,883 5,534 Preferred dividends 256 233 Basic net earnings per common share $3.82 $4.12 Diluted net earnings per common share $3.66 $3.93 Shareholders' equity: Convertible class A preferred stock, stated value $1 per share $1,195 $1,234 Common stock, stated value $1 per share 4,008 4,008 Additional paid-in capital 63,181 62,405 Treasury stock, at cost (shares held: 2014--1261.2; 2013--1243) (69,604) (67,278) Retained earnings 75,349 70,682 Accumulated other comprehensive income/(loss) (9,333) (2,054) Other (761) (996) Shareholders'…
6. How much will be in arrears at the end of 2018? ____________________ 7. How should the scrip dividend and related interest be recorded?
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On its Form 10-K for the year ended December 31, 2018, Bank of America Corp. reported information related to basic earnings per share.Fill in the missing information. Rounding instruction: Round answer a. to two decimal places.Round answer b., c., & d. to the nearest million.Round answer e. to one decimal place. $ millions, except per share amounts 2018 2017 2016 Net income $28,147 $18,232 d. Answer Preferred stock dividends 1,451 b. Answer $1,682 Net income applicable to common shareholders 26,696 c. Answer $16,140 Average common shares outstanding 10,096.5 10,195.6 e. Answer Basic earnings per share a. Answer $1.63 $1.57

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