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Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000 shares of cumulative preferred 3% stock, $20 par and 405,000 shares of $25 par common.
During its first four years of operations, the following amounts were distributed as dividends: first year, $31,000; second year, $76,000; third year, $100,000; fourth year, $120,000.
Problem 1: Determine the dividends per share on each class of stock for each of the four years.
Financial Statement Analysis and Preparation
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