Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as f

Question

Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 81,700 shares of cumulative preferred 2% stock, $15 par, and 398,600 shares of $23 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $55,900 ; second year, $77,800 ; third year, $80,300 ; fourth year, $101,300 .

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 Year2nd Year3rd Year4th YearPreferred stock (dividends per share)$$$$Common stock (dividends per share)$$$$

Explanation / Answer

Dividend per share :

Annual preferred dividend = 81700*15*2% = 24510

1st year 2nd year 3rd year 4th year Preferred Stock( dividend per share) 24510/81700 =0.30 24510/81700 =0.30 24510/81700 =0.30 24510/81700 =0.30 Common Stock (dividend per share) 31390/398600=0.08 53290/398600 = 0.13 55790/398600 = 0.14 76790/398600 = 0.19

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