Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 18,000 shares of cumulative 1%, preferred stock of $110 par, and 60,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $13,320; second year, $18,360; third year, $57,720; fourth year, $103,200. Calculate the dividends per share on each class of stock for each of the four years. Round all answers to the nearest cent. If no dividends are paid in a given year, enter \"0\". Solution Note:- It is assumed that the face value of the shares are same as the par value , if the face value is different the dividend per share will also be different .

1. Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 18,000
shares of cumulative 1%, preferred stock of $110 par, and 60,000 shares of $20 par common.
During its first four years of operations, the following amounts were distributed as dividends:
first year, $13,320; second year, $18,360; third year, $57,720; fourth year, $103,200.
Calculate the dividends per share on each class of stock for each of the four years. Round all
answers to the nearest cent. If no dividends are paid in a given year, enter "0".
1st Year 2nd Year 3rd Year 4th Year
Preferred $ $ $ $
Common $ $ $ $
Solution
Note:- It is assumed that the face value of the shares are same as the par value , if the face value
is different the dividend per share will also be different
1 2 3 4
Preferred
$ .74
13320/18000
$ 1.02
18360/18000
$ 1.1 $ 1.1
Common 0 0
$ .632(57720-
19800/60000)
$ 1.39 per share(103200-
19800/60000)