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Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000 shares of cumulative...

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Accounting

Seventy-Two Inc., a developer of radiology equipment, has stockoutstanding as follows: 80,000 shares of cumulative preferred 3%stock, $15 par, and 401,400 shares of $24 par common. During itsfirst four years of operations, the following amounts weredistributed as dividends: first year, $55,700 ; second year,$78,000 ; third year, $78,900 ; fourth year, $98,300.

Calculate the dividends per share on each class of stock foreach of the four years. Round all answers to two decimal places. Ifno dividends are paid in a given year, enter "0".

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4.2 Ratings (810 Votes)

Statementshowing Computations
Paticulars First year Second Year Third Year Fourth Year
Total Dividend Paid          55,700.00                   78,000.00             78,900.00             98,300.00
Preference Dividend to be paid = 80,000*15*3%          36,000.00                   36,000.00             36,000.00             36,000.00
Preference Dividend Paid = Existing + arrears          36,000.00                   36,000.00             36,000.00             36,000.00
Dividend available for common stock          19,700.00                   42,000.00             42,900.00             62,300.00
Arrears of preference Dividend                         -                                    -                               -                               -  
Preference Dividend per share = Preference dividend/80,000                     0.45                             0.45                        0.45                        0.45
Common stock dividend=Dividend/401,400                     0.05                             0.10                        0.11                        0.16

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