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Sabas Company has issued and outstanding 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
Problem 1: Determine the dividend per share for preferred and common stock for the second year.
a.$2.25 and $0
b.$2.25 and $0.45
c.$2.00 and $0.45
d.$0 and $0.45
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