Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock
ID: 2404926 • Letter: D
Question
Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 16,000 shares of cumulative preferred 2% stock, $140 par, and 53,000 shares of $15 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $30,080; second year, $69,520; third year, $86,570; fourth year, $111,050. 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 "O". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) Common stock (dividend per share)Explanation / Answer
Answers
Working #1
A
No. of preferred stock shares
16,000
B
Par Value
$ 140.00
C=A x B
Total Value of stock
$ 2,240,000.00
D
rate of dividend on above
2%
E=C x D
Annual Preferred stock dividend payable (or accumulated)
$ 44,800.00
Working column
Year 1
Year 2
Year 3
Year 4
A
Total Dividend declared and paid
$ 30,080.00
$ 69,520.00
$ 86,570.00
$ 111,050.00
Dividend payable to Preferred stock:
B
For previous years
$ -
$ 14,720.00
$ -
C [calculated in Working #1]
For current year
$ 44,800.00
$ 44,800.00
$ 44,800.00
$ 44,800.00
D
Dividend PAID to Preferred stockholders
$ 30,080.00
$ 59,520.00
$ 44,800.00
$ 44,800.00
E = D - B - C
Dividend not paid and cumulated
$ 14,720.00
$ -
$ -
$ -
F =A - D
Dividend paid to Common Stock holders
$ -
$ 10,000.00
$ 41,770.00
$ 66,250.00
Working
Year 1
Year 2
Year 3
Year 4
A [calculated in Working #2, column 'D']
TOTAL Preferred Stock dividend paid
$ 30,080.00
$ 59,520.00
$ 44,800.00
$ 44,800.00
B = A / 16,000 shares
Preferred stock dividend per share
$ 1.88
$ 3.72
$ 2.80
$ 2.80
C [calculated in Working #2, column 'F']
TOTAL Common Stock dividend paid
$ -
$ 10,000.00
$ 41,770.00
$ 66,250.00
D = C / 53,000 shares
Common stock dividend per share
$ -
$ 0.19
$ 0.79
$ 1.25
Working #1
A
No. of preferred stock shares
16,000
B
Par Value
$ 140.00
C=A x B
Total Value of stock
$ 2,240,000.00
D
rate of dividend on above
2%
E=C x D
Annual Preferred stock dividend payable (or accumulated)
$ 44,800.00