Question

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 16,000 shares of cumulative preferred 3% stock, $120 par, and 53,000 shares of $15 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $38,560; second year, $86,640; third year, $112,970; fourth year, $147,700. 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) $ $ $ $

Answer 1

	1st year	2nd year	3rd year	4th year
Preferred Dividend per share	$                         2.41	$                    4.79	$                   3.60	$                   3.60
Common Stock per share	$                              -	$                    0.19	$                   1.04	$                   1.70

--Working

	Par Value per Preferred Share	Dividend rate	Dividend per Preferred Share	No. of Preferred Shares	Preferred Dividend
Annual Preferred Dividend:	$                        120	3.00%	$                   3.600	16,000	$            57,600.00
	Total Cash Dividend paid	Paid to Preferred	Paid to Common	Dividends in Arrears at Year end
Year 1	$           38,560.00	$           38,560.00	$                          -	$          19,040.00
Year 2	$            86,640.00	$           76,640.00	$           10,000.00	$                          -
Year 3	$          112,970.00	$           57,600.00	$           55,370.00	$                          -
Year 4	$          147,700.00	$           57,600.00	$           90,100.00	$                          -
TOTAL	$          385,870.00	$        230,400.00	$        155,470.00	$                          -

	1st year	2nd year	3rd year	4th year
Preferred Dividend:
Total	$              38,560.00	$          76,640.00	$         57,600.00	$        57,600.00
Dividend per share	$                         2.41	$                    4.79	$                   3.60	$                   3.60
Common Stock Dividend:
Total	$                              -	$          10,000.00	$         55,370.00	$        90,100.00
Dividend per share	$                              -	$                    0.19	$                   1.04	$                   1.70