Dividends Per Share Fairmount Inc., a developer of radiology equipment, has stoc
ID: 2423185 • Letter: D
Question
Dividends Per Share
Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 24,000 shares of cumulative preferred 3% stock, $150 par, and 80,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $72,480; second year, $100,560; third year, $188,560; fourth year, $212,800.
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 Year
2nd Year
3rd Year
4th Year
Preferred stock (dividend per share)
$
$
$
$
Common stock (dividend per share)
$
$
$
$
1st Year
2nd Year
3rd Year
4th Year
Preferred stock (dividend per share)
$
$
$
$
Common stock (dividend per share)
$
$
$
$
Explanation / Answer
Statement showing computations Particulars Year 1 Year2 Year3 Year4 Amount distributed as dividends 72,480.00 100,560.00 188,560.00 212,800.00 Preference Div - CY 108,000.00 108,000.00 108,000.00 108,000.00 Total prefernce Div = CY + Pending PY 143,520.00 150,960.00 108,000.00 Preference Dividend Declared 72,480.00 100,560.00 150,960.00 108,000.00 Pending Preference dividend 35,520.00 42,960.00 - - Common stock Dividend - - 37,600.00 104,800.00 Pref Div per share 3.02 4.19 6.29 4.50 Common stock div per share - - 0.47 1.31 Preference Dividend = 24000*150*3% 108,000.00