Imaging Inc., a developer of radiology equipment, has stock outstanding as follo

Question

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 24,000 shares of cumulative preferred 4% stock, $150 par, and 80,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $96,480; second year, $201,520; third year, $252,000; fourth year, $284,000.

Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".

1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) $ $ $ $ Common stock (dividend per share) $ $ $ $

Explanation / Answer

working note:

preferred dividend to be paid every year before common stock holders are paid = 24,000 * 4% * 150 =>$144,000.

1st year 2nd year 3rd year 4th year preferred stock (dividend per share) $4.02 $7.98 $6 $6 common stock (dividend per share) $0 $0.13 $1.35 $1.75

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