Dividends Per Share

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 11,000 shares of cumulative preferred 4% stock, $150 par, and 37,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $44,220; second year, $97,780; third year, $116,080; fourth year, $131,860.

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".

Dividends Per Share

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 24,000 shares of cumulative preferred 1% stock, $120 par, and 80,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $19,200; second year, $48,400; third year, $85,120; fourth year, $153,600.

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".

When Crossett Corporation was organized in January Year 1, it immediately issued 4,300 shares of $53 par, 5 percent, cumulative preferred stock and 10,500 shares of $6 par common stock. Its earnings history is as follows: Year 1, net loss of $17,900; Year 2, net income of $63,800; Year 3, net income of $95,300. The corporation did not pay a dividend in Year 1.

Required
a. How much is the dividend arrearage as of January 1, Year 2?
  


b. Assume that the board of directors declares a $42,790 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? (Amounts to be deducted should be indicated with minus sign.)

Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 25,000 shares of cumulative preferred 3% stock, $25 par, and 31,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $7,250; second year, $11,750; third year, $61,120; fourth year, $99,970. 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".

Preferred stock (dividend per share) Common stock (dividend per share)

1st Year

2nd Year

3rd Year

4th Year

Chubbyville purchases a delivery van for $22,500. Chubbyville estimates a four-year service life and a residual value of $2,100. During the four-year period, the company expects to drive the van 108,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods.

1. Straight-line.?

3. Actual miles driven each year were 19,000 miles in Year 1; 30,000 miles in Year 2; 22,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 96,000 fall short of expectations by 12,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places.)

Dividends Per Share

Lightfoot Inc., a software development firm, has stock outstanding as follows: 15,000 shares of cumulative preferred 4% stock, $20 par, and 19,000 shares of $125 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $4,500; second year, $7,500; third year, $39,960; fourth year, $66,340.

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".

A flood control project has a construction cost of $10 million in year 1; $6 million in year 2; and $2 million in year 3, when it is completed. Beginning in year 4, annual O&M costs are $200,000/year. The interest rate is 6%. Benefits also begin accruing in year 4, valued at $1.5 million that year. Thereafter, the benefits grow at a uniform rate of $30,000/year until the end of the project life of 50 years.

1. Make a cash flow table of costs and benefits over the 50-year project life using excel.
2. What are the present worth values of the costs and the benefits?
3. What is the net present value of the project?
4. The project is feasible if the ratio of benefits to costs, (B/C) > 1. Is the flood control project feasible?

Dividends Per Share

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $130 par, and 67,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $69,600; second year, $148,400; third year, $174,410; fourth year, $184,400.

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".

Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 23,000 shares of cumulative preferred 4% stock, $140 par, and 77,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $86,250; second year, $181,350; third year, $218,050; fourth year, $233,520. 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) $ $ $ $

1) You are considering an investment that will pay you $12,000 the first year, $13,000 the second year, $17,000 the third year, $19,000 the fourth year, $23,000 the fifth year, and $28,000 the sixth year (all payments are at the end of each year). What is the maximum you would be willing to pay for this investment if your opportunity cost is 11%?

3)How much would you be willing to pay for an investment that will pay you and your heirs $16,000 each year in perpetuity if your opportunity cost is 6%?

ONLY ANSWER THIS TWO QUESTIONS! MUST DO ON EXCEL AND SHOW WORK:

Rework Question 1 assuming an opportunity cost of 11% with daily compounding.

Rework question 3) if you want the payments to grow by 2% indefinitely. ( first payment in 16000 in year 1)