Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock
ID: 2582028 • Letter: D
Question
Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 16,000 shares of cumulative preferred 2% stock, $140 par, and 53,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $30,080; second year, $69,520; third year, $97,170; fourth year, $140,730. Compute 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) $ $ $ 0 $ 0 Common stock (dividend per share) $ 0 $ $ 0 $ 0
Explanation / Answer
Annual Perferred dividends = 16000*140*2%= 44800 Perferred dividends Common dividends Total Per share Total Per share First year 30080 1.88 0 Second year 59520 3.72 10000 0.19 Third year 44800 2.8 52370 0.99 Fourth year 44800 2.8 95930 1.81