eventy-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, $30,000; second year, $76,000; third year, $80,000; fourth year, $110,000. 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 "0.00".
eventy-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, $30,000; second year, $76,000; third year, $80,000; fourth year, $110,000. 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 "0.00".
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative
During its first four years of operations, the following amounts were distributed as dividends: first year, $30,000; second year, $76,000; third year, $80,000; fourth year, $110,000.
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 "0.00".
Transcribed Image Text:**Module 6 Problem Set**
**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: $30,000
- Second year: $76,000
- Third year: $80,000
- Fourth year: $110,000
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 "0.00".
| | 1st Year | 2nd Year | 3rd Year | 4th Year |
|--------|----------|----------|----------|----------|
| Preferred stock (dividends per share) | $ | $ | $ | $ |
| Common stock (dividends per share) | 0 | | | |
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**Explanation:**
This exercise involves calculating dividends per share for preferred and common stock over a period of four years. The values are to be filled in based on annual dividend amounts, with special attention to cumulative preferred dividends. All calculations should account for any unpaid dividends in prior years for preferred stock before any distribution to common stockholders.
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