Homework SourseImaging Inc a developer of radiology equipment has stock out
Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 21,000 shares of cumulative preferred 2% stock, $120 par, and 70,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $33,810; second year, $76,990; third year, $103,460; fourth year, $142,100.
Compute 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
Compute the dividends per share on each class of stock for each of the four years.
| 1st year | 2nd year | 3rd year | 4th year | |
| Preferred dividend (21000*120*2%) | 33810 | 66990 | 50400 | 50400 |
| Preferred stock (dividend per share) | 1.61 | 3.19 | 2.40 | 2.40 |
| Common stock dividend | 0 | 10000 | 53060 | 91700 |
| Common stock (dividend per share) | 0 | 0.14 | 0.76 | 1.31 |
