Question: Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 15,000 shares of cumulative preferred 2% stock, $20 par, and 19,000

Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 15,000 shares of cumulative preferred 2% 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, $2,250; second year, $3,750; third year, $28,340; fourth year, $61,480. 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 (dividend per share) $.15 $.25 $ $.40
Common stock (dividend per share) $0 $0 $ $2.92

Can't figure out how to get the third year. Thank you.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!