eventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 20 par and 400,000 shares of $25 par common. uring its first four years of operations, the following amounts were distributed as dividends: first year, $31,000; second year, $7 ear, $90,000; fourth year, $120,000. Determine the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places lividends are paid in a given year, enter "0". Preferred stock (dividends per share) Common stock (dividends per share) 1st Year 0.52 0 2nd Year 1.25 X 0.09 ✓ 3rd Year X X 4th Year 0.60 0.21
eventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 20 par and 400,000 shares of $25 par common. uring its first four years of operations, the following amounts were distributed as dividends: first year, $31,000; second year, $7 ear, $90,000; fourth year, $120,000. Determine the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places lividends are paid in a given year, enter "0". Preferred stock (dividends per share) Common stock (dividends per share) 1st Year 0.52 0 2nd Year 1.25 X 0.09 ✓ 3rd Year X X 4th Year 0.60 0.21
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How do I calculate for the 2nd and 3rd year? Would you please be able to show the steps?
Transcribed Image Text:Dividends per share
Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 3% stock,
$20 par and 400,000 shares of $25 par common.
During its first four years of operations, the following amounts were distributed as dividends: first year, $31,000; second year, $75,000; third
year, $90,000; fourth year, $120,000.
Determine 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".
Preferred stock (dividends per share)
Common stock (dividends per share)
1st Year
0.52
0
$
2nd Year
1.25 X
0.09
$
3rd Year
X
X
$
4th Year
0.60
0.21
Expert Solution
Step 1
Introduction:-
- Dividends derived from portion of a company's profits.
- Which are distributed to shareholders, based upon the number of shares held in the company.
- Firstly preferred shareholders are entitled to receive dividends before common shareholders.
Step by step
Solved in 3 steps
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