Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dividends per share seventy-two inc., a developer

Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,600...

Free

80.2K

Verified Solution

Question

Accounting

Dividends Per Share Seventy-Two Inc., a developer of radiologyequipment, has stock outstanding as follows: 80,600 shares ofcumulative preferred 3% stock, $15 par, and 398,300 shares of $23par common. During its first four years of operations, thefollowing amounts were distributed as dividends: first year,$56,900 ; second year, $77,100 ; third year, $80,900 ; fourth year,$99,500 . Calculate the dividends per share on each class of stockfor each of the four years. Round all answers to two decimalplaces. If no dividends are paid in a given year, enter "0". 1stYear 2nd Year 3rd Year 4th Year Preferred stock (dividends pershare) $ 0.45 $ 0.45 $ 0.45 $ 0.45 Common stock (dividends pershare) $ $ $ $

Answer & Explanation Solved by verified expert
4.5 Ratings (642 Votes)

  • Workings

Par Value per Preferred Share

Dividend rate

Dividend per Preferred Share

No. of Preferred Shares

Preferred Dividend

Annual Preferred Dividend:

$                          15

3.00%

$                   0.450

                    80,600

$            36,270.00

Total Cash Dividend paid

Paid to Preferred

Paid to Common

Dividends in Arrears at Year end

Year 1

$            56,900.00

$           36,270.00

$           20,630.00

$                          -  

Year 2

$            77,100.00

$           36,270.00

$           40,830.00

$                          -  

Year 3

$            80,900.00

$           36,270.00

$           44,630.00

$                          -   

Year 4

$            99,500.00

$           36,270.00

$           63,230.00

$                          -  

TOTAL

$          314,400.00

$        145,080.00

$        169,320.00

$                          -  

  • Answers

1st year

2nd year

3rd year

4th year

Preferred Dividend:

Total

$              36,270.00

$          36,270.00

$         36,270.00

$        36,270.00

Dividend per share [Total / 80600 shares]

$                         0.45

$                    0.45

$                   0.45

$                   0.45

Common Stock Dividend:

Total

$              20,630.00

$          40,830.00

$         44,630.00

$        63,230.00

Dividend per share [Total / 398300 shares]

$                         0.05

$                    0.10

$                   0.11

$                   0.16

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Suppose f(x) is a very well behaved function in that it is continuous and differential everywhere,...

Biology
1.2K views

Explain what ZIP and ZnT proteins are and what they do to Zn concentrations.

Chemistry
1.2K views

Be sure to answer all parts. Find the pH of the equivalence point and the volume...

Accounting
1.2K views

Shadee Corp. expects to sell 510 sun visors in May and 430 in June. Each visor...

Geometry
1.2K views

Which angles are adjacent angles H LL F E DGE G B D DGE C...

Basic Math
1.2K views

If the radius of a right circular cylinder is 4x and theheight of the cylinder...

Basic Math
1.2K views

Kurtis had purchased a renters insurance policy for his new apartment at an annual premium...

Calculus
1.2K views

Evaluate the expression without using a calculator 34 If you have had difficulty with this...

Algebra
1.2K views

A truck can be rented from Company A for $120 a day plus $0.20 per...

Algebra
1.2K views

actor the polynomial and use the factored form to find the zeros Enter your answers...

Accounting
1.2K views

These financial statement items are for Oriole Corporation at year end, July 31, 2021: Operating...

Accounting
1.2K views

Stine Company uses a job order cost system. On May 1, the company has balances...