grimen takeAssignmentMain.do?inv.. ? Ch 13-3 Exercises & Problems Dividends Per
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grimen takeAssignmentMain.do?inv.. ? Ch 13-3 Exercises & Problems Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 18,000 shares of cumulative preferred 196 stock, $130 par, and 60,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $15,660; second year, $41,140; third year, $69,960;fourth year, $126,600. Compute the dividends per share on each dlass 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 "o". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) Common stock (dividend per share)Explanation / Answer
Answer = 1) Interest @ 1% Per year on preferred shares Peferred Capital = 18,000 Shares 1% of $ 130 Each = $ 23,40,000 $ 23,400 Common Share Capital = 60,000 Shares of $ 25 = $ 15,00,000 Cumulative means the if the preference dividend is not paid in the last year then that shoul be accumulate in next years payment ot it will carry forward as unpaid dividend Year total Cash Dividend Paid (A) Paid to Preferred Stock (B) Paid to Common Shares (A -B) Preference Dividend in the arreas 1st Year $ 15,660 $ 15,660.00 $ - $ 7,740.00 2nd Year $ 41,140 $ 31,140.00 $ 10,000.00 $ - 3rd Year $ 69,960 $ 23,400.00 $ 46,560.00 $ - 4th Year $ 1,26,600 $ 23,400.00 $ 1,03,200.00 Dividend per share = Dividend/ Total outstanding shares Preferred (Dividend / 18,000 Shares) Common Dividend / 60,000 Shares Dividend per share for Year 1= $ 0.87 $ - Dividend per share for Year 2= $ 1.73 $ 0.17 Dividend per share for Year 3 = $ 1.30 $ 0.78 Dividend per share for Year 4 = $ 1.30 $ 1.72
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