Q#3: Canton, Inc. has stock outstanding as follows: 25,000 shares of $2.00 cumulative, nonparticipating preferred stock...

  

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Q#3: Canton, Inc. has stock outstanding as follows: 25,000 shares of $2.00 cumulative, nonparticipating preferred stock of $50 par, and 100,000 shares of $25 par common. During its first five years of operations, the following amounts were distributed as dividends: first year, none; second year, $20,000; third year, $90,000; fourth year, $180,000; fifth year, $250,000. Required: a) Calculate the dividends per share on each class of stock for each of the five years. b) Calculate the dividends per share on each class of stock for each of the five years, assuming the stock is non-cumulative. Q#3: Canton, Inc. has stock outstanding as follows: 25,000 shares of $2.00 cumulative, nonparticipating preferred stock of $50 par, and 100,000 shares of $25 par common. During its first five years of operations, the following amounts were distributed as dividends: first year, none; second year, $20,000; third year, $90,000; fourth year, $180,000; fifth year, $250,000. Required: a) Calculate the dividends per share on each class of stock for each of the five years. b) Calculate the dividends per share on each class of stock for each of the five years, assuming the stock is non-cumulative.

Answer rating: 100% (QA)

a Calculate the dividends per share on each class of stock for each of the five years Answer Common Stock Dividends per Share ear 1 0 available so com... View the full answer