Dividends Per Share Lightfoot Inc a software development fir

Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 25,000 shares of cumulative preferred 3% stock, $25 par, and 31,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $7,250; second year, $11,750; third year, $61,120; fourth year, $99,970. 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)

1st Year

2nd Year

3rd Year

4th Year

Solution

Dividends on Preferred Stock 25000*3%*25 18750 !st year preferred dividend 7,250/25000 0.29 arrears in dividend = 18750-7250 11500 2nd year preferred dividend = 11750/25000 0.47 Arrears in dividend 18750-11750= 7000 3rd year preferred dividend dividend for current year 18,750 1st year arrear 11,500 2nd year arrear 7000 total dividend paid in year 3rd 37,250 number of shares 25,000 Dividend per share 1.49 Common shares   (61,120-37,250)/31000= 0.77 4th year preferred stock divdiend (18750/25000) 0.75 Common (99,970-18750)/31000 2.62 preferred common 1st year 0.29 0 2nd year 0.47 0 3rd year 1.49 0.77 4th year 0.75 2.62