Question

# Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 13,000 shares of cumulative...

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 13,000 shares of cumulative preferred 1% stock, \$120 par, and 43,000 shares of \$5 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, \$10,400; second year, \$30,800; third year, \$46,350; fourth year, \$83,540. 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".

Dividend on preferred stock = 13,000*\$120*1% = \$15,600 per year

 Preferred stock Common stock Amount Dividend per share Amount Dividend per share First year \$10,400 \$0.8 (10,400/13,000) 0 0 Second year 20,800 (15,600-10,400+15,600) 1.6 (20,800/13,000) 10,000 (\$30,800-20,800) 0.23 (10,000/43,000) Third year 15,600 1.2 (15,600/13,000) 30,750 (46,350-15,600) 0.72 (30,750/43,000) Fourth year 15,600 1.2 67,940 (83,540-15,600) 1.58 (67,940/43,000)

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