Dividends Per Share

Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 10,000 shares of cumulative preferred 3% stock, $140 par, and 33,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $28,100; second year, $39,100; third year, $75,960; fourth year, $89,850.

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".

4th Year 4.2 1.72 3rd Year 2nd Year $4.2 $0.18 1st Year $4.2 $4.2 Preferred stock (dividend per share) $1.30 Common stock (dividend per share) 0 Hide Feedback Partially Correct Check My Work Feedback Is the preferred stock cumulative or non-cumulative stock? Determine what amount of current dividends that preferred stock should receive per year. Is the question asking for a per share amount or total amount per class of stock? Learning Objective 3