Question

Dividends Per Share

Seventy-Two Inc., a developer of radiology equipment, has Shares of ownership of a corporation.stock outstanding as follows: 80,900 shares of cumulative preferred 3% stock, $15 A dollar amount assigned to each share of stock.par, and 398,500 shares of $24 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $56,900 ; second year, $76,800 ; third year, $80,400 ; fourth year, $98,900 .

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".

	1st Year	2nd Year	3rd Year	4th Year
A class of stock with preferential rights over common stock.Preferred stock (dividends per share)	$	$	$	$
The stock outstanding when a corporation has issued only one class of stock.Common stock (dividends per share)	$	$	$	$

Answer 1

	1st year	2nd year	3rd year	4th year
Preferred stock (dividend per share)	$0.45	$0.45	$0.45	$0.45
Common stock (dividend per share)	$0.05 (56,900-36,405/398,500)	$0.10 (76,800-36,405/398,500)	$0.11 (80,400-36,405/398,500)	$0.16 (98,900-36,405/398,500)

Working note:

Preferred dividend = 80,900*$15*3% = $36,405

Preferred dividend per share = $36,405/80,900 = $0.45 per share