Michelangelo Inc., a software development firm, has Shares of ownership of a cor
ID: 2455845 • Letter: M
Question
Michelangelo Inc., a software development firm, has Shares of ownership of a corporation.stock outstanding as follows: 15,000 shares of cumulative 4%, A class of stock with preferential rights over common stock.preferred stock of $20 The monetary amount printed on a stock certificate.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, $4,500; second year, $6,300; third year, $40,020; fourth year, $62,350.
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) $ $ $ $Explanation / Answer
Stock outstanding as follows:
(A) 15,000 shares of cumulative 4%, A class of stock with preferential rights over common stock at par $20
(B) 19,000 shares of $75 par common
During its first four years of operations, the following amounts were distributed as dividends: first year, $4,500; second year, $6,300; third year, $40,020; fourth year, $62,350.
The dividends per share on each class of stock for each of the four years=
Stock with preference 1st year 2nd year 3rd year 4th year Preferred Stock (Total Dividend paid) $4,500 $6,300 $12,000 $12,000 Dividend per share $0.3 $0.42 $0.80 $0.80 Common Stock (Total Dividend paid) 0 0 $28020 $50350 Dividend per share 0 0 $1.48 $2.65