Question

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 16,000 shares of cumulative preferred 3% stock, $140 par, and 53,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $44,960; second year, $99,440; third year, $128,530; fourth year, $163,130.

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)

Answer 1

Computation of dividends per share on each class of stock for each of the four years 1st Year 2nd Year 3rd Year 4th Year a Total Dividend Distributed $ 44,960 $ 99,440 $ 1,28,530 $ 1,63,130 b Preferred Dividend $ 44,960 $ 89,440 $ 67,200 $ 67,200 c Common Shares Dividend (a-b) $ - $ 10,000 $ 61,330 $ 95,930 d No Of Preferres Shares 16000 16000 16000 16000 e Preferred stock (dividend per share) (b/d) $ 2.81 $ 5.59 $ 4.20 $ 4.20 f No of common shares 53000 53000 53000 53000 g Common stock (dividend per share) (c/f) $ - $ 0.19 $ 1.16 $ 1.81 Preferred Stock Dividend Per Year =16000 shares *$140 par*3% =$67200