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: 21,000 shares of cumulative preferred 2% stock, $120 par, and 70,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $33,810; second year, $76,990; third year, $103,460; fourth year, $142,100.

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

Compute the dividends per share on each class of stock for each of the four years.

1st year 2nd year 3rd year 4th year Preferred dividend (21000*120*2%) 33810 66990 50400 50400 Preferred stock (dividend per share) 1.61 3.19 2.40 2.40 Common stock dividend 0 10000 53060 91700 Common stock (dividend per share) 0 0.14 0.76 1.31

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