Homework SourseDividends Per Share Michelangelo Inc a software development
Dividends Per Share
Michelangelo Inc., a software development firm, has stock outstanding as follows: 10,000 shares of cumulative 1%, preferred stock of $25 par, and 13,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $1,000; second year, $1,300; third year, $15,470; fourth year, $37,470.
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\".
| 1st Year | 2nd Year | 3rd Year | 4th Year | |
| Preferred stock (dividend per share) | $ | $ | $ | $ |
| Common stock (dividend per share) | $ | $ | $ | $ |
Solution
Annual Dividend to be paid to preferred stockholders = $25 x 10000 x 1% = $2500
| years | 1 | 2 | 3 | 4 |
| total dividend paid | $ 1,000 | $ 1,300 | $ 15,470 | $ 37,470 |
| Dividend to preferred shareholders | $ 1,000 | $ 1,300 | $ 2,500 | $ 2,500 |
| Dividend accured to preferred shareholders | $ 1,500 | $ 1,200 | ||
| Cumulative dividend accrued and paid to preferred stockholders | $ 2,700 | |||
| Total dividend paid to preferred stockholders | $ 1,000 | $ 1,300 | $ 5,200 | $ 2,500 |
| Dividend to common stockholders (total dividend - dividend paid to preferred stockholders) | $ 10,270 | $ 34,970 | ||
| Dividend per share of preferred stock (dividend paid by number of shares) | $ 0.10 | $ 0.13 | $ 0.52 | $ 0.25 |
| Dividend per share of common stock (dividend paid by number of shares) | $ - | $ - | $ 0.79 | $ 2.69 |
