Question

Dividends Per Share Lightfoot Inc., a software development form, has stock outstanding as follows: 15,000 shares of cumulative preferred 3% stock, $20 par, and 19,000 shares of $50 par common During its first four years of operations, the following amounts were distributed as dividends: first year, $3,450; second year, $5,700;third year, $33,810; fourth year, $63,20. 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" Ist Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) Common stock (dividend per share)

Answer 1

	Year-1	Year-2	Year-3	Year-4
Preferred stock ( Dividend per share)	$0.23	$0.38	$1.19	$0.60
Common stock ( Dividend per share)	$0.00	$0.00	$0.84	$2.86

Working : Computation off Dividend per share to Preferred aand common stock - LightFoot Inc.
		Preferred Dividend	Dividend to common stock (c=a-b)	Dividend per share to Preferred Share (b/15000)	Dividend per share to common Share (c/19000)
	Total Dividend (a)	Annual Dividend Payable*	Dividend Paid (b)
Year-1	$3,450.00	$9,000.00	$3,450.00	$0.00	$0.23	$0.00
Year-2	$5,700.00	$9,000.00	$5,700.00	$0.00	$0.38	$0.00
Year-3	$33,810.00	$9,000.00	$17,850.00	$15,960.00	$1.19	$0.84
			(27000-3450-5700)
Year-4	$63,340.00	$9,000.00	$9,000.00	$54,340.00	$0.60	$2.86
*Preferred dividend payable =15000*20*3%=$9000,