Information for Sabas Company# SharesPar ValueCumulativePreferred Stock 20,000$100.001.5%Common Stock 100,000$50.00N/A Year 1Year 2Year 3Total dividends paid$12,000.00$18,000.00$90,000.00 Determine the dividends for each class of stock for each year and the dividends pershare for each class of stock for each year. DescriptionYear 1Year 2Year 3Total Distribution Preferred Stock Common Stock Preferred dividends in Arrears Dividends Per share Preferred Stock Common Stock

Preferred dividend = 20,000 shares x $100 x 1.5% = $30,000

Answered: Information for Sabas Company # Shares…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 3SEA

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Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
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Information for Sabas Company	# Shares	Par Value	Cumulative
Preferred Stock	20,000	$100.00	1.5%
Common Stock	100,000	$50.00	N/A

	Year 1	Year 2	Year 3
Total dividends paid	$12,000.00	$18,000.00	$90,000.00

Determine the dividends for each class of stock for each year and the dividends per
share for each class of stock for each year.

Description	Year 1	Year 2	Year 3
Total Distribution

Preferred Stock
Common Stock
Preferred dividends in Arrears
Dividends Per share
Preferred Stock
Common Stock