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# Calculating Dividends Per Share

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Wings Inc., a software development firm, has stock outstanding as follows: 25,000 shares of cumulative 1%, preferred stock of \$40 par, and 50,000 shares of \$120 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, \$7,500; second year, \$10,500; third year, \$25,000; fourth year, \$60,000.

Calculate the dividends per share on each class of stock for each of the four years. Round all answers to the nearest whole cent. If no dividends are paid in a given year, enter "0".

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Solution:
Details 1st year 2nd year 3rd year 4th year Total
Regular dividend on shares of preferred stock \$7,500 \$8,000 \$10,000 \$10,000 \$35,500
Arrears of dividend on cumulative shares of pref stock \$0 \$2,500 \$2,000 \$0 \$4,500
Dividend on shares of common stock 0 \$0 \$13,000 \$50,000 \$63,000
Total Dividend distributed \$7,500 \$10,500 \$25,000 \$60,000 \$103,000
Dividend per ...

#### Solution Summary

In this solution we calculate the dividends per share for a series of stocks in Excel.

\$2.19