Sandpiper Company has 20,000 shares of 1% cumulative preferred stock of $150 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends:

Year 1 $60,000

Year 2 15,000

Year 3 90,000

Determine the dividends per share for preferred and common stock for each year. Round all answers to nearest cent. If an answer is zero, enter '0'.

Solution:

Dividends per share for preferred stock

Year 1: $3.00

Year 2: $0.74

Year 3: $4.41

Dividends per share for common stock

Year 1: $1.20

Year 2: $0.30

Year 3: $1.76