Dividends Per Share Lightfoot Inc., a software development firm, has stock outst

Question

Dividends Per Share

Lightfoot Inc., a software development firm, has stock outstanding as follows: 40,000 shares of cumulative preferred 1% stock, $125 par, and 100,000 shares of $150 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $36,000; second year, $58,000; third year, $75,000; fourth year, $124,000.

Determine the dividends per share on each class of stock for each of the four years. Round your 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) $ $ $ $ Lighfoot tnc,a software development f wnwar" d..lopment hm, has stock outstandng os blows: 40,000 nres o, cumvativ" pr Determine the dividends per share oneach class of stock for each of the %r year. Round your o swers to two mal class of tock, $125 r, and 108,000shs of $150par mn and Year 1

Explanation / Answer

Annual preferred dividends = 40000*125*1%= 50000 Preferred dividends Common dividends Total Per share Total Per share 1st Year 36000 0.9 0 0 2nd Year 58000 1.45 0 0 3rd Year 56000 1.4 19000 0.19 4th Year 50000 1.25 74000 0.74

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