1 answer

Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 21,000...

Question:

Dividends Per Share

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 21,000 shares of cumulative preferred 1% stock, $110 par, and 70,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $15,540; second year, $40,660; third year, $79,240; fourth year, $153,300.

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) $ $ $ $

Answers

Preferred shares 21000
Par value 110
Dividend rate 1%
Common shares 70000
Preferred stock will receive a fixed dividend every year
Preferred stock (dividend per share) 1.1
=110*1%
Preferred stock total dividend 23100
=110*1%*21000

Since the preferred shares are cumulative in nature, any dividend less than the minimum required amount as calculated above will be carried forward and paid next year. Common shares will receive dividend only when all the current as well as past (accumulated) dividend on preferred shares has been paid off

1st Year
Total dividend per share 15540
Preferred stock total dividend 15540
Preferred stock (dividend per share) 0.74 =15540/21000
Common stock (dividend per share) 0
Carried forward dividend on preferred share 0.36 =1.1-0.74
2nd Year
Total dividend per share 40660
Preferred stock total dividend 23100 =110*1%*21000
Preferred stock (dividend per share) 1.1 =110*1%
Carried forward dividend on preferred share 7560 =23100-15540
Carried forward dividend on preferred share (per share) 0.36 =7560/21000
Total dividend per share- Preferred shares 1.46 =1.1+0.36
Total dividend - Preferred shares 30660 =23100+7560
Common stock total dividend 10000 =40660-30660
Common stock (dividend per share)          0.14 =10000/70000
3rd Year
Total dividend per share 79,240
Preferred stock total dividend 23100 =110*1%*21000
Preferred stock (dividend per share) 1.1 =110*1%
Common stock total dividend 56,140 =79240-23100
Common stock (dividend per share)          0.80 =56140/70000
4th Year
Total dividend per share 153,300
Preferred stock total dividend 23100 =110*1%*21000
Preferred stock (dividend per share) 1.1 =110*1%
Common stock total dividend 130,200 =153300-23100
Common stock (dividend per share) 1.86 =130200/70000
1st Year 2nd Year 3rd Year 4th Year
Total dividend 15540 40660 79240 153300
Preferred stock (dividend per share) 0.74 1.46 1.1 1.1
Common stock (dividend per share) 0          0.14          0.80

1.86

.

Similar Solved Questions

1 answer
Sheridan Company purchased machinery for $850000 on January 1, 2017. Straight-line depreciation has been recorded based...
Sheridan Company purchased machinery for $850000 on January 1, 2017. Straight-line depreciation has been recorded based on a $52000 salvage value and a 5-year useful life machinery was sold on May 1, 2021 at again of $19000. How much cash did Sheridan receive from the sale of the machinery? O $12540...
1 answer
Find #dy/dx# if #y^2=x(x-1)^2#?
Find #dy/dx# if #y^2=x(x-1)^2#?...
1 answer
4,5,6 pendent express solutions in terms of the parameter YYPP999 Solve the system of equations. If...
4,5,6 pendent express solutions in terms of the parameter YYPP999 Solve the system of equations. If the system is dependent, express 4) x+y+ .7 x-y + 4 .9 5x + y = -19 Solve the problem by writing and solving a suitable system of equations 5) IF 10 pounds of sugar and 40 pounds of flour cost $29 ...
1 answer
Firms A, B, C, and D manufacture infant car seats. Due to a change in consumer...
Firms A, B, C, and D manufacture infant car seats. Due to a change in consumer preferences, A and B lay off workers, all of whom are needed by C and D to meet increased demand. But until the laid-off workers can find and agree to accept those jobs, they are employed. O cyclically O frictionally stru...
1 answer
Determine whether S = { (1,0,0) , (1,1,0) , (1,1,1) } Is a basis for R^3 and write (8,3,8) as a linear combination of vector in S. Please explain in details how to solve this problem.
Determine whether S = { (1,0,0) , (1,1,0) , (1,1,1) } Is a basis for R^3 and write (8,3,8) as a linear combination of vector in S. Please explain in details how to solve this problem....
1 answer
What is systematic error? All of the above Error due to uncertainty in measurements. Error due...
What is systematic error? All of the above Error due to uncertainty in measurements. Error due to improper experimental technique which can be prevented by improvising the experiment. Error due to natural scatter of data...
1 answer
Prove 1.For all A, B ∈ Mmn and scalar a, a(A + B) = aA +...
Prove 1.For all A, B ∈ Mmn and scalar a, a(A + B) = aA + aB. 2. For all A ∈ Mmn and scalars a, b, (a + b)A = aA + bA. 3. For all A ∈ Mmn, 1A = A....
1 answer
A box of mass m=46.6kg is pushed upward with an acceleration a=7.7ms 2 by a horizontal...
A box of mass m=46.6kg is pushed upward with an acceleration a=7.7ms 2 by a horizontal force F. The slope on which the box rests makes an angle a=55 degree. What should be the force F? Refer to the figure below. The unit of the answer is N. Q3.4 Aceleraton a g=9.8ms 2 Force F Mass m...
1 answer
Bruno's Lunch Counter is expanding and expects operating cash flows of $28,500 a year for 6...
Bruno's Lunch Counter is expanding and expects operating cash flows of $28,500 a year for 6 years as a result. This expansion requires $95,800 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $7,000 of net working capital throughout...
1 answer
4. What is the present value of a consul bond (a perpetuity) providing $5,000 per year...
4. What is the present value of a consul bond (a perpetuity) providing $5,000 per year and a rate of return of 12%?...
1 answer
I'm struggling to visualize this problem. Please include a free body diagram. 1. Determine the equation...
I'm struggling to visualize this problem. Please include a free body diagram. 1. Determine the equation of motion for the system in Figure 1. IM Figure 1: Mass-Spring-Damper system for Problem 1....
1 answer
1. In Actor-Network Theory, briefly define the terms “actors”, “translation”, “delegation”, and “prescription”.2. What is anthropomorphism?
1. In Actor-Network Theory, briefly define the terms “actors”, “translation”, “delegation”, and “prescription”.2. What is anthropomorphism?...
1 answer
Probability and statistics for engineers d. 0.75 Question 12 Not yet 20 students scores in MATH235...
Probability and statistics for engineers d. 0.75 Question 12 Not yet 20 students scores in MATH235 course are given in the following steam-leaf display. Find the percentage of the students who score above 30 answered Marked out of 2 Steam Leat P Flag question 0 12 3335 1 0347 2 36 669 3 34456 a. 100...
1 answer
How do you divide #( 2i-1) / ( -i -1 )# in trigonometric form?
How do you divide #( 2i-1) / ( -i -1 )# in trigonometric form?...
1 answer
Inverted Index is a one big HashMap with A. key as the token and value as...
Inverted Index is a one big HashMap with A. key as the token and value as the document that contains that token B. key as the token and value as the list of documents with contains that token C. key as the document and value as all the tokens in that document D. none of the above...
1 answer
11. The figure shows the contour map of the function T (in "C giving the temperature at each poin...
11. The figure shows the contour map of the function T (in "C giving the temperature at each point (r, y) on an 8cm x 5 cm rectangular metal plate. Use it to estimate the rate of change of the temperature at the point (3,2)in the positive r-direction and in the positive y-direction. 4 75 80 105 ...
1 answer
Suppose that Kiara Corp’s just paid pays a dividend of $3, for which rs = 12%...
Suppose that Kiara Corp’s just paid pays a dividend of $3, for which rs = 12% and g = 40% for 4 years before achieving long-run growth of 6%. What is the price of the stock today? $139.11 $129.39 None of these $125.24 $142.11...
1 answer
2 Kinkaid Co. is incorporated at the beginning of this year and engages in a number...
2 Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders' equity during its first year of operations General Journal Debit Credit Cash a. 12.5 290,e00 Common Stock, $25 Par Value Paid-In Capital i...
2 answers
During the 2003-2004 NBA season, Dirk Nowitzki of the Dallas Mavericks made a total of 976 shots and scored 1680 points
During the 2003-2004 NBA season, Dirk Nowitzki of the Dallas Mavericks made a total of 976 shots and scored 1680 points. His shots consisted of 3-point field goals than free throws. Use an inverse matrix to find how many of each type of shot he made....