Question

Lightfoot Inc., a software development firm, has stock outstanding as follows: 25,000 shares of cumulative preferred 3% stock, $20 par, and 31,000 shares of $125 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $5,750; second year, $9,500; third year, $53,620; fourth year, $96,220. 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".

Answer 1

	1st year	2nd year	3rd year	4th year
Accrued at beginning	0	9250	14750	0
Preference dividend	5750	9500	29750	15000
Accrued to next year	9250	14750	0	0
	(15000-5750)	(9250+15000-9500)
Total dividend	5750	9500	53620	96220
Preference dividend	5750	9500	29750	15000
Common stock dividend	0	0	23870	81220
Preference dividend per share	0.23	0.38	1.19	0.6
	(5750/25000)	(9500/25000)	(29750/25000)	(15000/25000)
Common stock dividend per share			0.77	2.62
			(23870/31000)	(81220/31000)