Michelangelo Inc., a software development firm, has stock outstanding as follows
ID: 2537261 • Letter: M
Question
Michelangelo Inc., a software development firm, has stock outstanding as follows: 15,000 shares of cumulative 2%, preferred stock of $25 par, and 19,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $2,850; second year, $4,050; third year, $29,470; fourth year, $54,620.
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".
Explanation / Answer
Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places.
Annual preferred dividend = 15000*25*2% = 7500
Preferred dividend Common dividend Total dividend Total Per share Total Per share First year 2850 2850 0.19 Second year 4050 4050 0.27 Third year 29470 15600 1.04 13870 0.73 Fourth year 54620 7500 0.50 47120 2.48 Total 90990 30000 2.00 60990 3.21