Dividends per share Imaging Inc., a developer of radiology equipment, has stock
ID: 2328729 • Letter: D
Question
Dividends per share
Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $140 par, and 67,000 shares of $15 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $75,000; second year, $159,000; third year, $188,290; fourth year, $199,770.
Compute 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".
Year 1 Year 2 Year 3 Year 4
Explanation / Answer
4% Cumulative Preferred Stock 20000 140 2800000 Common Stock 67000 15 1005000 Year 1 Year 2 Year 3 Year 4 Dividends Paid 75000 159000 188290 199770 Less: No. of Common Stock 67000 67000 67000 67000 Dividends Per Share-Common Stock 1.12 2.37 2.81 2.98 Year 1 Year 2 Year 3 Year 4 4% Cumulative Preferred Stock-DPS 5.60 5.60 5.60 5.60 (140*4%)