Question

Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 13,000 shares of cumulative preferred 4% stock, $130 par, and 43,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $45,240; second year, $99,960; third year, $115,710; fourth year, $126,080. 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

Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places.

Annual preferred dividend = 13000*130*4% = $67600

2nd year dividend = (67600*2)-45240 =

	1st year	2nd year	3rd year	4th year
Preferred Stock (dividend per share)	45240/13000 = 3.48	89960/13000 = 6.92	67600/13000 = 5.20	67600/13000 = 5.20
Common Stock (dividend per share)	0	10000/43000 = 0.23	48110/43000 = 1.12	58480/43000 = 1.36