How do I calculate dividends per share?

How to calculate dividends per share for preferred and common stock?

• Sandpiper Company has 20,000 shares of 1% cumulative preferred stock of $100 par and 100,000 shares of $50 par I common stock. The following amounts were distributed as dividends: Year 1 10,000 Year 2 45000 Year 3 80,000 Can someone please show me calculations of how you work this out. Once i see the calculations i can understand this and move on with my studying. Thanks guys!

• Answer:

  The preferred dividend is fixed at 1% of $100 =$1.00 per share. There are 20,000 shares of preferred so that means an annual dividend of $20,000 on the preferred. Now it is cumulative. In year one they paid only $10,000 so in year 2 they still owed the preferred $10,000 from year 1. They paid $45,000 so $30,000 went to the preferred and $15,000 to the common. In year 3 $20,000 to the preferred and $60,000 to the common.