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Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $160 par, and 67,000 shares of
Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $160 par, and 67,000 shares of $5 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $85,800; second year, $119,000; third year, $209,350; fourth year, $211,750.
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) 2nd Year 3rd Year 4th Year 1st Year 6.400 3 5.95 10.47 3 10.59Step by Step Solution
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