Fair mount inc a developer of radiology equipment has stock outstanding as follo

Question

Fair mount inc a developer of radiology equipment has stock outstanding as follows: 15,000 shares of comulative preferred 4% stock, $150 par, and 50,000 shares of $15 par common during its first four years of operations the following amounts were distributed as dividends: first year $60,300; second year, $83,700; third year $150,500; fourth year $158,000. 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. Fair mount inc a developer of radiology equipment has stock outstanding as follows: 15,000 shares of comulative preferred 4% stock, $150 par, and 50,000 shares of $15 par common during its first four years of operations the following amounts were distributed as dividends: first year $60,300; second year, $83,700; third year $150,500; fourth year $158,000. 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. 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.

Explanation / Answer

Cumulative Prefence Dividend to be paid = 15000*150*4% = $ 90000 Dividend Per Share Year Dividends Declared Preference Dividend Common Dividend Unpaid Preference Dividend Preference Common 1 60300 60300 0 29700 (90000 - 60300) 4.02 (60300/15000) 0 2 83700 83700 0 36000 (29700 + 90000 - 83700) 5.58 (83700/15000) 0 3 150500 126000 (90000+36000) 24500 (150500 - 126000) 0 8.4 (126000/15000) 0.49 (24500/50000) 4 158000 90000 68000 (158000 - 90000) 0 6 (90000/22000) 1.36 (68000/50000)

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