Hays-Smith Company has 18,000 shares of 4% cumulative preferred stock of $125 par and 50,000 shares of

Question:

Hays-Smith Company has 18,000 shares of 4% cumulative preferred stock of $125 par and 50,000 shares of $40 par common stock. The following amounts were distributed as dividends:

Year 1 ......$ 72,000

Year 2 ...... 125,000

Year 3 ...... 160,000

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

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...