Zero Calories Company has 16,000 shares of cumulative preferred 1% stock, $40 par and 80,000 shares of $150 par common stock . The following amounts were distributed as dividends: Year 1....$ 21,600 Year 2.... 4,000 Year 3 ...100,800 Determine the dividends per share for preferred and common stock for each year.

Chapter 11, Practice Exercises #2

Zero Calories Company has 16,000 shares of cumulative preferred 1% stock, $40 par and 80,000 shares of $150 par common stock. The following amounts were distributed as dividends:

Year 1....$ 21,600

Year 2.... 4,000

Year 3 ...100,800

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...