Textbook Problem

Dividends per share

Triple Z Inc., a developer of radiology equipment, has stock outstanding as follows: 12,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $10 par common. During its first four year of operations, the following amounts were distributed as dividends: first year, $27,000; second year, $60,000, third year, $80,000, fourth year, $90,000. Calculate the dividends per share on each class of stock for each of the four years.