Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has st
ID: 2528707 • Letter: D
Question
Dividends Per Share
Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,800 shares of cumulative preferred 3% stock, $15 par, and 399,300 shares of $23 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $56,500 ; second year, $76,100 ; third year, $80,500 ; fourth year, $98,800 .
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 (dividends per share) $ $ $ $ Common stock (dividends per share) $ $ $ $Explanation / Answer
Calculate the dividends per share on each class of stock for each of the four years.
Annual preferred dividend = 80800*15*3% = 36360
1st year 2nd year 3rd year 4th year Preferred stock (dividends per share) 36360/80800 = 0.45 36360/80800 = 0.45 36360/80800 = 0.45 36360/80800 = 0.45 Common stock (dividends per share) 20140/399300 = 0.05 39740/399300 = 0.10 44140/399300 = 0.11 62440/399300 = 0.16