Sabas 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 each year. If required, round your answers to two decimal places. If your answer is zero, please enter "0". Dividends per share Year 1 Year 2 Year 3 Preferred stock Common stock

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Chapter15: Financial Statement Analysis
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Sabas 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 each year. If required, round your answers to two decimal places. If your answer is zero, please
enter "0".
Dividends per share
Year 1
Year 2
Year 3
Preferred stock
$
Common stock
$
Transcribed Image Text:Sabas 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 each year. If required, round your answers to two decimal places. If your answer is zero, please enter "0". Dividends per share Year 1 Year 2 Year 3 Preferred stock $ Common stock $
Expert Solution
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Dividend distribution is a method of distributing profit among the stockholder of the organization. The preferred stockholder has the right to receive dividend first in comparison to the common stockholder at a fixed percentage.

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