Lightfoot Inc., a software development firm, has stock outstanding as follows: 4

Question

Lightfoot Inc., a software development firm, has stock outstanding as follows: 41,900 shares of cumulative 1% preferred stock, $130 par, and 100,000 shares of $145 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $32,800; second year, $58,400; third year, $73,100; fourth year, $124,300.

Calculate 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".

Explanation / Answer

Statementshowing Computations Paticulars 1st year 2nd year 3rd year 4th year Total Dividend Paid           32,800.00           58,400.00           73,100.00        124,300.00 Preference Dividend to be paid = 41900*130*1%           54,470.00           54,470.00           54,470.00           54,470.00 Preference Dividend Paid = Existing + arrears           32,800.00           58,400.00           72,210.00           54,470.00 Dividend available for common stock                          -                            -                   890.00           69,830.00 Arrears of preference Dividend           21,670.00           17,740.00                          -                            -   Preferred stock (dividends per share)                 0.7828                 1.3938                 1.7234                 1.3000 Common stock (dividends per share)                          -                            -                   0.0089                 0.6983

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