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, $32,000; second year, $72,000; third year, $80,000; fourth year, $100,000. 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".

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Anthougoid Anthougoid · Answer 1

The dividends per share on each class of stock for each of the four years for Seventy-Two Inc. are as follows:

Year 1 Year 2 Year 3 Year 4

Distributed Dividends $32,000 $40,000 $36,000 $36,000

Outstanding shares 60,000 60,000 60,000 60,000

Dividend per share $0.53 $0.67 $0.60 $0.60

Year 1 Year 2 Year 3 Year 4

Distributed Dividends $0 $32,000 $44,000 $64,000

Outstanding shares 400,000 400,000 400,000 400,000

Dividend per share $0 $0.08 $0.11 $0.16

3% Cumulative Preferred Common Stock

Outstanding shares 60,000 400,000

Par Value $20 $25

Total value $1,200,000 $10,000,000

Annual dividend $36,000 ($1,200,000 x 3%)

Year 1 Year 2 Year 3 Year 4

Distributed Dividends $32,000 $72,000 $80,000 $100,000

Cumulative Preferred $32,000 $40,000 $36,000 $36,000

Common Stock $0 $32,000 $44,000 $64,000

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