Question

# Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 30,000 shares...

Dividends Per Share

Lightfoot Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative preferred 2% stock, \$20 par, and 38,000 shares of \$75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, \$4,500; second year, \$7,500; third year, \$57,820; fourth year, \$127,140.

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".

 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) \$ \$ \$ \$ Common stock (dividend per share) \$ \$ \$ \$

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"

Annual preferred dividend = 30000*20*2% = 12000

 1st year 2nd year 3rd year 4th year Preferred stock (dividend per share) 4500/30000 = 0.15 7500/30000 = 0.25 24000/30000 = 0.80 12000/30000 = 0.20 Common stock (dividend per share) 0 0 33820/38000 = 0.89 115140/38000 = 3.03

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