Question

Lightfoot Inc., a software development firm, has stock outstanding as follows: 10,000 shares of cumulative preferred 4% stock, $20 par, and 13,000 shares of $50 par common.

Dividends Per Share Lightfoot Inc., software development fim, has stock outstanding as follows: 10,000 shares of cumulative preferred 4 stock, 520 pac and 13,000 shares of $50 par common. During its first four years of operations, the folowing amounts were distributed as dividends: fast year, $3,000, second year 55.000,hed yet $26.140; fourth at $42.450 Calculate the dividends per share on each dess of stock for each of the four years. Round all answers to two decimal places. Y no dividends are pad na genyent enter" 4th Year Preferred stock (dividend per share) Common stock (dividend per share)

Answer 1

Preferred dividend = 10000*20*4% = 8000

	1st year	2nd year	3rd year	4th year
Preferred stock (dividend per share)	3000/10000 = 0.30	0.50	16000/10000 = 1.60	8000/10000 = 0.80
Common Stock (Dividend per share)	0	0	10140/13000 = 0.78	34450/13000 = 2.65