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Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 23,000 shares of cumulative...

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 23,000 shares of cumulative preferred 4% stock, $150 par, and 77,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $92,460; second year, $193,540; third year, $240,940; fourth year, $270,440. 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". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) $ $ $ $ Common stock (dividend per share) $ $ $ $

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Expert Solution

Dividend on preferred shares
23,000*4%*150
138000
First year
dividend to preferred stock = 92460/23000
4.02 per share
Second year
Dividend to preferred shareholders
Arrear in dividend (138000-92460)= 45540
Dividend to preferred shareholders 138,000
total dividend to preferred shareholders 183540
dividend per share = 183540/23000
7.98
Dividend to common shareholders (193540-183540)
10000
0.13
Third year
dividend to preferred shareholders = 138000/23000
6
dividend to common shareholders = (240,940 - 138000)/77000
1.34
Fourth year
Dividend to preferred shareholders = $6 per share
dividend to common shareholders = (270,440-138000)/77000
1.72
preferred Common
dividend dividend
per share per share
First year 4.02 0
second year 7.98 0.13
third year 6 1.34
Fourth year 6 1.72

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