Homework SourseImaging Inc a developer of radiology equipment has stock out
Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 24,000 shares of cumulative preferred 4% stock, $150 par, and 80,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $96,480; second year, $201,520; third year, $252,000; fourth year, $284,000.
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
working note:
preferred dividend to be paid every year before common stock holders are paid = 24,000 * 4% * 150 =>$144,000.
| 1st year | 2nd year | 3rd year | 4th year | |
| preferred stock (dividend per share) | $4.02 | $7.98 | $6 | $6 |
| common stock (dividend per share) | $0 | $0.13 | $1.35 | $1.75 |
