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    Lightfoot Inc: Dividends

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    Lightfoot Inc., a software development firm, has Shares of ownership of a corporation.stock outstanding as follows: 40,000 shares of cumulative preferred 1% stock, $125 The monetary amount printed on a stock certificate.par, and 100,000 shares of $150 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $36,000; second year, $58,000; third year, $75,000; fourth year, $124,000.

    Segregate the dividends paid among Preferred and Equity shareholders and compute dividend per share.

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    Solution Summary

    The solution explains the method of segregation of dividends to each category and then computation of dividend per share.