Internal Insights Inc., a developer of radiology equipment, has stock outstanding as follows: 70,000 shares of cumulative preferred 2% stock, $60 par, and 100,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $49,000; second year, $132,000; third year, $146,000; fourth year, $160,000.

Compute 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.

To calculate the dividend per share for each class of stock, we first need to determine the total dividends paid to preferred and common stockholders in each year.

- The preferred stock pays a cumulative 2% dividend on its $60 par value, meaning it pays $1.20 per share in dividends ($60 * 0.02 = $1.20).

- The preferred stock is cumulative, which means that any dividends not paid in previous years must be paid before any dividends can be paid to common stockholders.

Now let's calculate the dividends for each year:

First Year:
- Total dividends paid: $49,000
- Total preferred dividends owed: $84,000 (70,000 shares * $1.20 per share)

Since the total dividends paid are less than the total preferred dividends owed, all of the $49,000 will be distributed to preferred stockholders, and no dividends will be paid to common stockholders.

Preferred stock: $0.70 per share ($49,000 / 70,000 shares)
Common stock: $0.00 per share

Second Year:
- Total dividends paid: $132,000
- Total preferred dividends owed: $84,000 (70,000 shares * $1.20 per share, from previous year)

Since the total dividends paid are more than the total preferred dividends owed, the $84,000 will be distributed to preferred stockholders and the remaining $48,000 will be distributed to common stockholders.

Preferred stock: $1.20 per share ($84,000 / 70,000 shares)
Common stock: $0.48 per share ($48,000 / 100,000 shares)

Third Year:
- Total dividends paid: $146,000
- Total preferred dividends owed: $84,000 (70,000 shares * $1.20 per share)

Preferred stock: $1.20 per share ($84,000 / 70,000 shares)
Common stock: $0.62 per share ($62,000 / 100,000 shares)

Fourth Year:
- Total dividends paid: $160,000
- Total preferred dividends owed: $84,000 (70,000 shares * $1.20 per share)

Preferred stock: $1.20 per share ($84,000 / 70,000 shares)
Common stock: $0.76 per share ($76,000 / 100,000 shares)

In summary, the dividend per share for each class of stock is:

Year 1: Preferred - $0.70, Common - $0.00
Year 2: Preferred - $1.20, Common - $0.48
Year 3: Preferred - $1.20, Common - $0.62
Year 4: Preferred - $1.20, Common - $0.76

To compute the dividend per share on each class of stock for each of the four years, we need to follow these steps:

1. Find the cumulative preferred and common shares dividend for each year.
2. Divide the total dividend by the number of shares outstanding for each class of stock.

Let's calculate the dividend per share for each year:

Year 1:

- Cumulative preferred dividend: $49,000
- Common dividend: $0

Dividend per share calculations:

- Cumulative preferred dividend per share: $49,000 / 70,000 shares
- Common dividend per share: $0

Year 2:

- Cumulative preferred dividend: $0
- Common dividend: $132,000

Dividend per share calculations:

- Cumulative preferred dividend per share: $0
- Common dividend per share: $132,000 / 100,000 shares

Year 3:

- Cumulative preferred dividend: $0
- Common dividend: $146,000

Dividend per share calculations:

- Cumulative preferred dividend per share: $0
- Common dividend per share: $146,000 / 100,000 shares

Year 4:

- Cumulative preferred dividend: $0
- Common dividend: $160,000

Dividend per share calculations:

- Cumulative preferred dividend per share: $0
- Common dividend per share: $160,000 / 100,000 shares

Let's calculate the dividend per share for each year:

Year 1:
- Cumulative preferred dividend per share: $0.70
- Common dividend per share: $0

Year 2:
- Cumulative preferred dividend per share: $0
- Common dividend per share: $1.32

Year 3:
- Cumulative preferred dividend per share: $0
- Common dividend per share: $1.46

Year 4:
- Cumulative preferred dividend per share: $0
- Common dividend per share: $1.60

Therefore, the dividend per share on each class of stock for each of the four years are as follows:

Year 1:
- Cumulative preferred dividend per share: $0.70
- Common dividend per share: $0

Year 2:
- Cumulative preferred dividend per share: $0
- Common dividend per share: $1.32

Year 3:
- Cumulative preferred dividend per share: $0
- Common dividend per share: $1.46

Year 4:
- Cumulative preferred dividend per share: $0
- Common dividend per share: $1.60

To compute the dividend per share on each class of stock for each of the four years, we need to follow these steps:

Step 1: Calculate the total dividend for each year.
Step 2: Divide the total dividend by the number of shares for each class of stock.
Step 3: Round the answer to two decimal places.

Let's calculate the dividend per share for each year.

Year 1:
Total dividend = $49,000
Dividend per share of cumulative preferred stock = Total dividend / Number of shares of cumulative preferred stock
Dividend per share of cumulative preferred stock = $49,000 / 70,000 shares
Dividend per share of cumulative preferred stock = $0.70

Dividend per share of common stock = Total dividend / Number of shares of common stock
Dividend per share of common stock = $49,000 / 100,000 shares
Dividend per share of common stock = $0.49

Year 2:
Total dividend = $132,000
Dividend per share of cumulative preferred stock = $132,000 / 70,000 shares
Dividend per share of cumulative preferred stock = $1.89

Dividend per share of common stock = $132,000 / 100,000 shares
Dividend per share of common stock = $1.32

Year 3:
Total dividend = $146,000
Dividend per share of cumulative preferred stock = $146,000 / 70,000 shares
Dividend per share of cumulative preferred stock = $2.09

Dividend per share of common stock = $146,000 / 100,000 shares
Dividend per share of common stock = $1.46

Year 4:
Total dividend = $160,000
Dividend per share of cumulative preferred stock = $160,000 / 70,000 shares
Dividend per share of cumulative preferred stock = $2.29

Dividend per share of common stock = $160,000 / 100,000 shares
Dividend per share of common stock = $1.60

So, the dividend per share on each class of stock for each of the four years are as follows:

Year 1:
Cumulative preferred stock: $0.70
Common stock: $0.49

Year 2:
Cumulative preferred stock: $1.89
Common stock: $1.32

Year 3:
Cumulative preferred stock: $2.09
Common stock: $1.46

Year 4:
Cumulative preferred stock: $2.29
Common stock: $1.60