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., a software development firm, has stock outstanding as follows: 30,000 shares

ID: 2364647 • Letter: #

Question

., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative 3%, preferred stock of $25 par, and 38,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $8,700; second year, $12,000; third year, $77,200; fourth year, $125,860. Calculate the dividends per share on each class of stock for each of the four years. Round all answers to the nearest cent. If no dividends are paid in a given year, enter "0". I have calculated the following: 1st year 2nd year 3rd year 4th year preferred .29 .40 common 0 0 Please provide information I am missing to correctly calculate year 3 and 4.

Explanation / Answer

30,000 x 25 x 0.03

= 22500 for preferred dividends