DMdends Per Share common. During its first four years of operations, the followi

Question

DMdends Per Share common. During its first four years of operations, the following a mounts were distributed as t maging Inc. a developer of radiology equ ment has s ock outstanding as follows: 17 000 shares of cumulative preferred 4% st ck $160 par, and 57,000 shares of $10 par dividends: first year, $72,930; second year, $154,670;third year, $182,530; fourth year, $192,590. 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 pald In a given year, enter ist Year 2nd Year rd Year 4th Year Preferred stock (dividend per share) 4.29 9.10 Common stock (dividend per share)

Explanation / Answer

Annual preferred dividend = 17000*160*4% = 108800

1st year 2nd year 3rd year 4th year Preferred Stock (dividend per share) 72930/17000 = $4.29 144670/17000 = $8.51 108800/17000 = $6.40 108800/17000 = $6.40 Common Stock (dividend per share) 0 10000/57000 = $0.18 73730/57000 = $1.29 83790/57000 = $1.47

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