Dividends Per Share Lightfoot Inc., a software development firm, has Shares of o
ID: 2430855 • Letter: D
Question
Dividends Per Share
Lightfoot Inc., a software development firm, has Shares of ownership of a corporation.stock outstanding as follows: 15,000 shares of cumulative A class of stock with preferential rights over common stock.preferred 4% stock, $25 par, and 19,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $5,700; second year, $9,450; third year, $43,530; fourth year, $61,550.
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".
Preferred stock (dividend per share) $ $ $ $ Common stock (dividend per share) $ $ $ $Explanation / Answer
Answer)
$5700
(15000shares×$25×4%)
[Remaining will be carried forward as it is cumulative preference share]
$9450
[(15000shares×$25×4%×2)-$5700]
[Remaining dividend will be carried farward as it is cumulative preference shares]
$29850
[(15000shares×$25×4%×3)-$5700-$9450]
$15000
[15000 shares×$25×4%]
0
[No profit left]
0
[No profit left]
$13680
[$43530-$29850]
$46550
[$61550-$15000]
Preferred stock (dividend per share)$5700
(15000shares×$25×4%)
[Remaining will be carried forward as it is cumulative preference share]
$9450
[(15000shares×$25×4%×2)-$5700]
[Remaining dividend will be carried farward as it is cumulative preference shares]
$29850
[(15000shares×$25×4%×3)-$5700-$9450]
$15000
[15000 shares×$25×4%]
Common stock (dividend per share)0
[No profit left]
0
[No profit left]
$13680
[$43530-$29850]
$46550
[$61550-$15000]