Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative preferred 3% stock, $20 par, and 38,000 shares of $100 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $6,900; second year, $11,400; third year, $68,380; fourth year, $128,960. Calculate the dividend 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, leave it blank. 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) Common stock (dividend per share)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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**Dividends Per Share Calculation for Lightfoot Inc.**

Lightfoot Inc., a software development firm, has the following stock structure:

- 30,000 shares of cumulative preferred 3% stock, $20 par
- 38,000 shares of $100 par common stock

### Dividend Distribution over Four Years

During the first four years of operations, dividends were distributed as follows:

- **First Year:** $6,900
- **Second Year:** $11,400
- **Third Year:** $68,380
- **Fourth Year:** $128,960

### Task

Calculate the dividend per share for each class of stock for each year. Round all answers to two decimal places. If no dividends are paid in a given year, leave it blank.

### Template for Calculation:

|                      | 1st Year | 2nd Year | 3rd Year | 4th Year |
|----------------------|----------|----------|----------|----------|
| **Preferred stock** \(dividend per share\) |  $       |  $       |  $       |  $       |
| **Common stock** \(dividend per share\)   |  $       |  $       |  $       |  $       |

**Note:** If the preferred dividends are not paid in full for a particular year, they are carried forward to the next year because they are cumulative.

For precise calculations, use the total dividends and the number of shares, considering dividend preferences and arrears for the preferred stock.
Transcribed Image Text:**Dividends Per Share Calculation for Lightfoot Inc.** Lightfoot Inc., a software development firm, has the following stock structure: - 30,000 shares of cumulative preferred 3% stock, $20 par - 38,000 shares of $100 par common stock ### Dividend Distribution over Four Years During the first four years of operations, dividends were distributed as follows: - **First Year:** $6,900 - **Second Year:** $11,400 - **Third Year:** $68,380 - **Fourth Year:** $128,960 ### Task Calculate the dividend per share for each class of stock for each year. Round all answers to two decimal places. If no dividends are paid in a given year, leave it blank. ### Template for Calculation: | | 1st Year | 2nd Year | 3rd Year | 4th Year | |----------------------|----------|----------|----------|----------| | **Preferred stock** \(dividend per share\) | $ | $ | $ | $ | | **Common stock** \(dividend per share\) | $ | $ | $ | $ | **Note:** If the preferred dividends are not paid in full for a particular year, they are carried forward to the next year because they are cumulative. For precise calculations, use the total dividends and the number of shares, considering dividend preferences and arrears for the preferred stock.
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