Answer:
A)
common stock dividends 9,600 // 0.32 EPS
preferred stock dividends 4,800 //0.8 EPS
B)
preferred stock dividends 14,400 // 2.4 EPS
C)
common stock dividends 51,600 // 1.72 EPS
preferred stock dividends 14,400 // 2.4 EPS
Explanation:
preferred stock 6,000 shares x $10 each x 8% = 4,800
If noncumulative then:
14,400 - 4,800 = 9,600 for common stock
EPS:
4,800 / 6,000 = 0.8 PS
9,600 / 30,000 = 0.32 CS
if cumulative:
4,800 x 3 years (2016 // 2017 and the current year 2018) = 14,400
EPS
14,400 / 6,000 = 2.4 PS
if dividends are 66,000 rather than 14,400
66,000 - 14,400 = 51,600
EPs 51,600 / 30,000 = 1.72
