22. Hollywood Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares...

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22. Hollywood 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 all the three years using the table below (hint: refer to example exercise from chapter 13 slides part I) Year 1 Year 2 Year 3 Amount distributed Preferred dividend common dividend Dividends per share: Preferred stock Common stock 22. Hollywood 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 all the three years using the table below (hint: refer to example exercise from chapter 13 slides part I) Year 1 Year 2 Year 3 Amount distributed Preferred dividend common dividend Dividends per share: Preferred stock Common stock

Answer rating: 100% (QA)

Annual preferred dividend 20000 x 100 x 2 40000 1 Year 1 Total dividend 10000 Pr... View the full answer