DMdends Per Share common During its first four years of oper

DMdends Per Share common. During its first four years of operations, the following a mounts were distributed as t maging Inc. a developer of radiology equ ment has s ock outstanding as follows: 17 000 shares of cumulative preferred 4% st ck $160 par, and 57,000 shares of $10 par dividends: first year, $72,930; second year, $154,670;third year, $182,530; fourth year, $192,590. 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 pald In a given year, enter ist Year 2nd Year rd Year 4th Year Preferred stock (dividend per share) 4.29 9.10 Common stock (dividend per share)

Solution

Annual preferred dividend = 17000*160*4% = 108800

	1st year	2nd year	3rd year	4th year
Preferred Stock (dividend per share)	72930/17000 = $4.29	144670/17000 = $8.51	108800/17000 = $6.40	108800/17000 = $6.40
Common Stock (dividend per share)	0	10000/57000 = $0.18	73730/57000 = $1.29	83790/57000 = $1.47