Dividends Per Share
Lightfoot Inc., a software development firm, has Shares of ownership of a corporation.stock outstanding as follows: 15,000 shares of cumulative A class of stock with preferential rights over common stock.preferred 4% stock, $25 par, and 19,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $5,700; second year, $9,450; third year, $43,530; fourth year, $61,550.
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".
Preferred stock (dividend per share) | $ | $ | $ | $ |
Common stock (dividend per share) | $ | $ | $ | $ |
Answer)
Preferred stock (dividend per share) |
$5700 (15000shares×$25×4%) [Remaining will be carried forward as it is cumulative preference share] |
$9450 [(15000shares×$25×4%×2)-$5700] [Remaining dividend will be carried farward as it is cumulative preference shares] |
$29850 [(15000shares×$25×4%×3)-$5700-$9450] |
$15000 [15000 shares×$25×4%] |
Common stock (dividend per share) |
0 [No profit left] |
0 [No profit left] |
$13680 [$43530-$29850] |
$46550 [$61550-$15000] |
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