Question

Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 14,000 shares of cumulative preferred 3% stock, $160 par, and 47,000 shares of $5 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $45,080; second year, $99,320; third year, $116,640; fourth year, $129,710. 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

	Year 1	Year 2	Year 3	Year 4
Total dividends declared (a)	45080	99320	116640	129710
Preferred Dividend (14000 * 3%*160) (b)	45080	67200	67200	67200
Preferred dividends in arrears (c)	0	22120	0	0
Total preferred dividends (d) = (b+c)	45080	89320	67200	67200
Common dividend (e) = (a-d)	0	10000	49440	62510
Dividend per share:
Preferred stock (d) / 14000 shares	3.22	6.38	4.8	4.8
Common stock (e) / 47,000 shares	0	0.21	1.05	1.33