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Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000 shares of cumulative preferred 3% stock, $20 par and 400,000 shares of
Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000 shares of cumulative preferred 3% stock, $20 par and 400,000 shares of $25 par common.
During its first four years of operations, the following amounts were distributed as dividends: first year, $32,000; second year, $76,000; third year, $90,000; fourth year, $100,000.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
DATA \begin{tabular}{|lr} \hline Cumulative preferred stock: & \\ Shares outstanding & 80,000 \\ Dividend right & 3% \\ Par value & $20 \\ \hline Common stock: & \\ Shares outstanding & 400,000 \\ Par value & $25 \\ Dividends distributed: & $32,000 \\ 1st year & $76,000 \\ 2nd year & $90,000 \\ 3rd year & $100,000 \\ 4th year & \end{tabular} \begin{tabular}{lll} Preferred stock (dividends per share) & 1st Year & 2nd Year \\ \hline Common stock (dividends per share) Year & $ \end{tabular}Step by Step Solution
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