Question

Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 15,000 shares of cumulative preferred 3% stock, $25 par, and 19,000 shares of $100 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $4,350; second year, $7,050; third year, $37,550; fourth year, $62,930. 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". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) Common stock (dividend per share)

Answer 1

Dividend per year for preferred stock = Preferred shares * Par value * Dividend % = 15000 * 25 * 3%

11250

Year	Total dividend paid	Dividend paid to preferred stock	Dividend paid to common stock	Dividend in arrears for preferred stock
1	4350	4350	0	6900
2	7050	7050	0	11100
3	37550	22350	15200	0
4	62930	11250	51680	0

Answer :
	1st year	2nd year	3rd year	4th year
Preferred stock ( Dividends per share ) [ Dividend paid to preferred stock / 15000 ]	0.29	0.47	1.49	0.75
Common stock ( Dividends per share ) [ Dividend paid to common stock / 19000 ]	0	0	0.80	2.72