genow keAssignmentMaindoinvokerassignmentstakeAsi assignment

genow keAssignmentMaindo?invoker-assignments&takeAsi; assignment-take&mprogresm; eBook Show Me How Calculator Dividends Per Share Seventy Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000 shares of cumulative preferred 3% stock $20 par and 400,000 shares of $25 par common. During its first four years of ope ations, the following amounts were distributed as dividends: first year, $36,000; second year, $72,000; third year, $80,000; fourth year, $100,000. Determine the dividends per share on each class of stock for each of the four years. Round your answers to two decimal places. If no dividends are paid in a given year, enter \"o 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividends per share) Common stock (dividends per share) Next Check My Work 611 PM 0

Solution

Dividend to preferred shareholders = 80,000*3%*20 48000 1 st year preferred dividend           = 36000/80000 0.45 2 nd year Arrears in dividend (48000-36000)= 12000 preferred dividend this year 48,000 Total dividend paid to preferred shareholders 60000 dividend per share 60,000/80000 0.75 Dividend to common shareholders (72000-60000)/400,000 0.03 3 rd year preferred                          48000/80000 0.6 common shareholders (80000-48000)/400,000 0.08 4ht year preferred 0.6 common (100,000-48000)/400000 0.13 1st yr 2nd yr 3rd yr 4th yr Preferred Stock 0.45 0.75 0.6 0.6 Common stock 0 0.03 0.08 0.13