Question

Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 81,700 shares of cumulative preferred 2% stock, $15 par, and 398,100 shares of $24 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $56,100 ; second year, $76,000 ; third year, $79,700 ; fourth year, $101,900 . 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".

Answer 1

Dividend Per Share Year 1 Year 2 Year 3 Year 4 Total Preferred Dividend to be Paid $24,510.00 $24,510.00 $24,510.00 $ 24,510.00 Dividend Paid Total Preferred Dividend Paid Total Preferred shares O/s $56,100.00 $76,000.00 $76,700.00 $101,900.00 $24,510.00 $24,510.00 $24,510.00 24,510.00 81,700.00 0.30 Total Common Stock Dividend Paid $31,590.00 $51,490.00 $52,190.0077,390.00 398,100.00 398,100.00398,100.00 398,100.00 0.19 81,700.0081,700.0081,700.00 $0.30$0.30 $0.30 $ Dividend Per Preferred Stock Total Common Stock O/s Dividend Per Preferred Stock $0.08$0.13 $0.13$