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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