Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock
ID: 2593212 • Letter: D
Question
Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 19,000 shares of cumulative preferred 3% stock, $130 par, and 63,000 shares of $15 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $49,590; second year, $108,610; third year, $138,390; fourth year, $170,490. 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)
Common stock (dividend per share)
Explanation / Answer
Year 1 Year 2 Year 3 Year 4 Preferred stock 2.61 5.19 3.9 3.9 Common stock 0 0.16 1.02 1.53 Preferred dividend = 130*3% 3.9 Year 1 Year 2 Year 3 Year 4 Total dividend 49590 108610 138390 170490 LESS:preferred dividend @3.9 $ per share for 19000 shares 74100 74100 74100 74100 Unpaid pref div paid Current year 24510 No of preferred stock 19000 19000 19000 19000 Dividend per preferred share 2.61 5.19 3.9 3.9 Unpaid preference dividend 24510 to be paid next year Dividend avbl to common stock 0 10000 64290 96390 No of shares 63000 63000 63000 63000 Dividend per common stock 0 0.16 1.02 1.53