Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 22,000 shares of cumulative...

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 22,000 shares of cumulative preferred 1% stock, $120 par, and 73,000 shares of $5 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $17,600; second year, $45,200; third year, $73,460; fourth year, $127,870.

Compute 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".

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Expert Solution

	1st Year	2nd Year	3rd Year	4th Year
Preferred Dividend	$1201%22,000 = $26,400	$1201%22,000 = $26,400	$1201%22,000 = $26,400	$1201%22,000 = $26,400
Preferred Dividend paid	$ 17,600	$8,800+$26,400 = $35,200	$ 26,400	$ 26,400
Preferred dividend carreid forward	$26,400 - $17,600 = $8,800	$ -	$ -	$ -
Dividend available for common stock	$ -	$45,200 - $35,200 = $10,000	$73,460-$26,400 = $47,060	$127,870-$26,400 = $101,470
Dividend per share (Preferred stock) ($120*1%)	1.20	1.20	1.20	1.20
Dividend per share (Common stock)	0	$10,000/73,000 = $0.14	$47,060/73,000 = $0.64	$101,470/73,000 = $1.39

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ekkarill92 answered 1 year ago

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