Search Tex Ch 12-#2 Dividends eBook Show Me HowCaloulator Print tem Dividends Pe

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Search Tex Ch 12-#2 Dividends eBook Show Me HowCaloulator Print tem Dividends Per Share seventy Two Inc. a developer of radiology equipment, has stock outstanding as follows: 80 300 shares of ar ulative p efe ed 4% stock $15 par, and 998, 300 sha es of S24 parco During its first four years of operations, the following 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" . amounts were distributed as dividends: first year, $55,600 ; second year, $77,s00; third year, $78,100 fourth year, $99,200 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividends per share 7,420x Common stock (dividends per share) non-cumulative stock? Determine what amount of current dividends that preferred stock should receive per year. Is the question asking for a per Determine Is the preferred stock cumulative or share amount or total amount per class of stock? Leaning Objective 2

Explanation / Answer

Common Share outstanding : 398,300 shares Preferred Stock : 80,300 shares Par value of Share = $ 15 per share Preferred share capital (80,300 share*15) = $1204,500 Rate of preferred Dividend = 4% Annual Preferred Dividend (1204,500*4% ) = $ 48,180 Year Total Dividend Annual Preferred Div Div on Common Stock'. No. of Prefered Shares No. of commonShares Preferred Div per share Div per common share (Total Dividend- Preferred Div) 1 55600 48180 7420 80300 398300 0.60 0.02 2 77500 48180 29320 80300 398300 0.60 0.07 3 78100 48180 29920 80300 398300 0.60 0.08 4 99200 48180 51020 80300 398300 0.60 0.13 Preferred Dividend per share = Annual Preferred Dividend / Number of Preferred Shares Div on Common Share per share = Dividend to Common Shareholders/ Number of Common Shares Year 1 Year 2 Year 3 Year 4 Preferred Stock (Dividend per share) 0.60 0.60 0.60 0.60 Common Stock (Dividend per share) 0.02 0.07 0.08 0.13

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