Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:Year 1:$10,000Year 2:45,000Year 3:90,000Determine the dividends per share for preferred and common stock for the third year.a.$2.00 and $0.25b.$3.25 and $0.25c.$4.50 and $0.90d.$4.50 and $0.25

Generally, companies distribute a portion of there profit as dividend while retaining the remaining…

Answered: Year 1: $10,000 Year 2: 45,000 Year 3:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:

Year 1:	$10,000
Year 2:	45,000
Year 3:	90,000

Determine the dividends per share for preferred and common stock for the third year.

a.$2.00 and $0.25

b.$3.25 and $0.25

c.$4.50 and $0.90

d.$4.50 and $0.25

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