Determine the dividends per share

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Reference no: EM1346782

The Rago Corporation had the following stock outstanding from 2009 through 2012:
Preferred stock: $100 par value, 8 percent cumulative, 5,000 shares authorized, issued, and outstanding
Common stock: $10 par value, 100,000 shares authorized, issued, and outstanding
The company paid $30,000, $30,000, $94,000, and $130,000 in dividends during 2009, 2010, 2011, and 2012, respectively. The market price per common share was $7.25 and $8.00 per share at the end of years 2011 and 2012, respectively.
Required:
1. Determine the dividends per share and the total dividends paid to common stockholders and preferred stockholders in the years 2009, 2010, 2011, and 2012. If an amount is zero, enter "0". Round per share amounts to two decimal places.
2. Perform the same computations, with the assumption that the preferred stock was noncumulative. If an amount is zero, enter "0". Round per share amounts to two decimal places.
3. Calculate the 2011 and 2012 dividends yield for common stock, using the dividends per share computed in requirement 2. Round your answers to one decimal place.

Reference no: EM1346782

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