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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