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# Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 81,700...

Dividends Per Share

Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 81,700 shares of cumulative preferred 3% stock, $15 par, and 398,200 shares of$26 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $56,000 ; second year,$77,900 ; third year, $80,700 ; fourth year,$98,800 .

Calculate 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".

 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividends per share)   Common stock (dividends per share)  

## Solutions

##### Expert Solution

• All working forms part of the answer
• 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 81,700 $36,765.00  Total Cash Dividend paid Paid to Preferred Paid to Common Dividends in Arrears at Year end Year 1$            56,000.00 $36,765.00$           19,235.00 $- Year 2$            77,900.00 $36,765.00$          41,135.00 $- Year 3$            80,700.00 $36,765.00$           43,935.00 $- Year 4$            98,800.00 $36,765.00$          62,035.00 $- TOTAL$          313,400.00 $147,060.00$        166,340.00 $- • Answer along with working  1st year 2nd year 3rd year 4th year Preferred Dividend: A [calculated above] Total$              36,765.00 $36,765.00$         36,765.00 $36,765.00 B = A / 81700 shares Dividend per share [ANSWER]$                         0.45 $0.45$                   0.45 $0.45 Common Stock Dividend: A [calculated above] Total$              19,235.00 $41,135.00$         43,935.00 $62,035.00 B = A / 398200 shares Dividend per share [ ANSWER]$                         0.05 $0.10$                   0.11 $0.16 ## Related Solutions ##### Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000... 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