Dividends Per Share L ghtfoot Inc., a so tware development firm has stock outsta

Question

Dividends Per Share L ghtfoot Inc., a so tware development firm has stock outstanding as follows: 41 400 shares o cumulative 1% preferred stock $120 par and 102,000 shares o S155 par common. During ts first four years o operations, the following amounts were distributed as dividends: first year, S32,700; second year $57,300; third year, $76,200; fourth year, $123,000 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 (divldends per share) Common stock (dividends per share)

Explanation / Answer

dividend per share- cumulative preference stock (it is companys obligation)

dividend per share=dividend on preference shares/preference stock @face value=41400*120*1%/41400=1

yr1 yr2 yr3 yr4

DPS 1 1 1 1

dividend per share- common stock

dividend per share=dividend distributed/common stock@face value

yr1 yr2 yr3 yr4

DPS 32700/102000 57300/102000 76200/102000 123000/102000

=0.32 =0.56 =0.747 =1.2058

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