Dividends Per Share Lightfoot Inc a software development fir

Dividends Per Share

Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $20 par, and 25,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $6,000; second year, $10,000; third year, $50,250; fourth year, $78,000.

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)	$	$	$	$

Solution

Calculation of Dividend per share Preferred share outstanding 20000 common share outstanding 25000 1st year 2nd year 3rd year 4th year 1) Dividend per Preferred share= total dividend /number of shares outstanding 6000/20000 10000/20000 50250/20000 78000/20000 0.3 0.5 2.5125 3.9 1) Dividend per common share= total dividend /number of shares outstanding 6000/25000 10000/25000 50250/25000 78000/25000 0.24 0.4 2.01 3.12