sion Board-5026-118204 Cengage l Online teach X https://N2.cengagenow.com/irn/ta

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sion Board-5026-118204 Cengage l Online teach X https://N2.cengagenow.com/irn/takeAssignment/takeAssignmentMain.do?invokerSearch Wintig Potin Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as folows: 80,700 shares of cumudative preferred 2% stok, $15 par, and 398,300 shares of $27 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $5,200 second year, $77,000; third year, $79,300; fourth year, $100,300 s per share on each dass of stock for each of the four years. Round all answers to two decimal places. If no dvidends are paid n a given year, enter "O 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividends per share) Common stock (dividends per share) Cheak My Wok Is the preferred stock cumulative or non-cumulative stock? Determine what amount of current dividends that preferred stock should receive year. Is the question asking for a per-share amount or total amount per class of stock? Learning Objective 2. Previous Check My Work

Explanation / Answer

1st Year

2nd Year

3rd Year

4th Year

Preferred sock (Per share)

$0.30

$0.30

$0.30

$0.30

Common stock (Per share)

$0.078

$0.13

$0.14

$0.19

Explanation;

1st Year

2nd Year

3rd Year

4th Year

Total dividend paid

$55200

$77000

$79300

$100300

Total dividend on preferred stock (80700 * $15) * .02

$24210

$24210

$24210

$24210

Total dividend on common stock (Total dividend paid – Total dividend on preferred stock)

$30990

$52790

$55090

$76090

Preferred sock (Per share) = Total common dividend / Total common shares

$24210 / 80700 = $0.30

$24210 / 80700 = $0.30

$24210 / 80700 = $0.30

$24210 / 80700 = $0.30

Common stock (Per share) = Total preferred dividend / Total preferred shares

$30990 / 398300 = $0.078

$52790 / 398300 = $0.13

$55090 / 398300 = $0.14

$76090 / 398300 = $0.19

1st Year

2nd Year

3rd Year

4th Year

Preferred sock (Per share)

$0.30

$0.30

$0.30

$0.30

Common stock (Per share)

$0.078

$0.13

$0.14

$0.19

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