How to Calculate Cumulative Preferred Stock Dividends

Find the dividend rate for the cumulative preferred stock. The dividend rate will be listed in the stock prospectus (available from the company or your broker). Normally the dividend rate is stated as an annual percentage of the par value (the price the stock was originally issued at).
Multiply the dividend percentage rate by the par value to find the dollar amount of the dividend per share. For example, if the rate is 8.0 percent and the par value is $30 per share, the annual dividend per share is $2.40. Divide this by four to find the quarterly dividend ($2.40/4 = $0.60 per share).
Check the company’s annual and quarterly reports to see if any cumulative preferred stock dividends have not been paid. If so, total the number of quarterly distributions that have been missed and multiply by the quarterly dividend per share. For instance, if the quarterly dividend is $0.60 per share and the company has missed three quarters, the accrued dividend is $1.80 per share.
Calculate the total amount of accrued dividends for the cumulative preferred stock you own. Simply multiply the number of shares by the accrued dividends per share. If there are accrued dividends of $1.80 per share and you own 100 shares, you have $180 coming to you in addition to the regular dividend payments you normally receive.
Figure your next quarterly dividend amount if there are no accrued dividends. This is the regular payment and equals the number of shares multiplied by the quarterly dividend. With a quarterly dividend of $0.60, this works out to $60 for 100 shares.

How to Calculate Treasury Stock Transactions

Determine the number of shares and the price per share at which your company repurchased its stock. For example, assume your company repurchased 500 shares of stock at $5 per share.
Multiply the number of shares by the price per share to calculate the repurchase cost. For example, multiply 500 by $5, which equals $2,500.
Increase your treasury stock account and reduce your cash account in your accounting records by the amount of the repurchase cost. For example, increase your treasury stock account by $2,500, and reduce your cash account balance by $2,500.



Multiply the number of shares of treasury stock you resold by the price per share at which you resold them. Then increase your cash account by that amount in your accounting records. For example, if you resold 250 shares for $6 per share, multiply 250 by $6, which equals $1,500. Then increase your cash account by $1,500.
Multiply the number of shares you resold by the price per share at which you initially repurchased them. Then reduce your treasury stock account by that amount in your accounting records. For example, if you initially repurchased the 250 shares for $5 per share, multiply 250 by $5, which equals $1,250. Then decrease your treasury stock account by $1,250.
Subtract the amount for which you initially repurchased the shares from the amount you received from reselling them to determine your profit. Then increase your paid-in-capital from treasury stock account by that amount. For example, subtract $1,250 from $1,500, which equals $250. Then increase your paid-in-capital account by $250.



Multiply the number of shares of treasury stock you resold by the price per share at which you resold them that is lower than the initial repurchase price. Then increase your cash account balance by that amount. For example, if you resold 250 shares for $4 per share, multiply 250 by $4, which equals $1,000. Then increase your cash account balance by $1,000.
Multiply the number of shares you resold by the price per share at which you initially repurchased them. Then decrease your treasury stock account balance by that amount in your accounting records. For example, if you initially repurchased the 250 shares for $5 per share, multiply 250 by $5, which equals $1,250. Then decrease your treasury stock account balance by $1,250.
Subtract the amount for which you resold the shares from the amount for which you originally repurchased them to determine your loss. Then decrease your paid-in-capital from treasury stock account by that amount. For example, subtract $1,000 from $1,250, which equals a $250 loss. Then decrease your paid-in-capital account by $250.

How to Calculate The Cost of a Newly Issued Preferred Stock

Convert the flotation cost percent to a decimal by dividing the number by 100. For example, a 5 percent flotation cost divided by 100 would be:
5/100=0.05
Subtract the decimal of the flotation cost from 1. For the example:
1 -- 0.05 = 0.95
Multiply the market price for the preferred stock by one minus the flotation cost. For the example, a market price of $100 would yield:
100x (0.95) = 95.
Divide the dividend paid by the preferred stock by this number. For the example, a dividend for the stock of $5 would result in:
5/95 = 0.053
Multiply this result by 100 to find the cost of the newly issued preferred stock as a percent. For the example:
0.053 x 100 = 5.3 percent.

How to Calculate Safety Stock

Before you can calculate your safety stock, you must determine the standard loss function. Subtract the desired fill rate from 1.
Multiply this sum by the demand, which is the amount of items that will be consumed or bought.
Multiply this sum by the time between orders. Write this sum down and set aside.
Add the time between orders (from Step 3) with the lead time. This is the time between your reorder decision and renewed availability.
Take this sum to the 1/2 power.
Multiply this sum by the standard deviation. See the Resources section below for steps to calculate the standard deviation.
Divide the sum from Step 3 by the sum from Step 6. This is the standard loss function.



Refer to a lookup table and determine what the variable 'z' for the standard loss function is.
Take the sum from Step 5 in the previous section (which is the time between orders plus the lead replenishment time taken to the 1/2 power) and multiply it by the standard deviation.
Multiply the sum with variable 'z' found in Step 1.
This sum is the safety stock.