Question

Dividends Per Share

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 22,000 shares of cumulative preferred 2% stock, $160 par, and 73,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $47,080; second year, $103,720; third year, $135,790; fourth year, $174,060.

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".

Preferred Stock (Dividend per share)
Year 1 : ______
Year 2 : ______
Year 3 : ______
Year 4 : ______

Common Stock (Dividend per share)
Year 1 : ______
Year 2 : ______
Year 3 : ______
Year 4 : ______

Answer 1

					Dividend per Share
	Pref. Stock Divi.	Cum. P.Divi.	Common Stock Divi.	Total Divi Amt.	Preferred Stock	Common St.
Pref. dividend @2%	70400
Outstanding stock					22000	73000
Year1	70400	23320	0	47080	3.2	0
Year2	70400	0	10000	103720	3.2	0.14
Year3	70400	0	65390	135790	3.2	0.90
Year4	70400	0	103660	174060	3.2	1.42
Pref. Stock Divi. = (160*22000)*2%
Common Stock Dividend = Total dividend - Cum. Pref. divi. - Pref. Stock Divi.