Question

Lightfoot Inc., a software development firm, has stock outstanding as follows: 41,900 shares of cumulative 1% preferred stock, $130 par, and 100,000 shares of $145 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $32,800; second year, $58,400; third year, $73,100; fourth year, $124,300.

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)	$	$	$	$

Answer 1

Statementshowing Computations
Paticulars	1st year	2nd year	3rd year	4th year
Total Dividend Paid	32,800.00	58,400.00	73,100.00	124,300.00
Preference Dividend to be paid = 41900*130*1%	54,470.00	54,470.00	54,470.00	54,470.00
Preference Dividend Paid = Existing + arrears	32,800.00	58,400.00	72,210.00	54,470.00
Dividend available for common stock	-	-	890.00	69,830.00
Arrears of preference Dividend	21,670.00	17,740.00	-	-
Preferred stock (dividends per share)	0.7828	1.3938	1.7234	1.3000
Common stock (dividends per share)	-	-	0.0089	0.6983