Dividends Per Share

Michelangelo Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative 4%, preferred stock of $25 par, and 38,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $11,400; second year, $15,900; third year, $91,200; fourth year, $126,900.

Calculate the dividends 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, enter "0".

                                                                   1st Year    2nd Year    3rd Year       4th Year

Preferred stock (dividend per share)          $              $                  $                    $

Common stock (dividend per share)           $              $                  $                    $

Effect of Stock Split

Gino's Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Midwest. Gino's Restaurant Corporation, which had 51,000 shares of common stock outstanding, declared a 3-for-1 stock split.

a. What will be the number of shares outstanding after the split?

shares

b. If the common stock had a market price of $180 per share before the stock split, what would be an approximate market price per share after the split?

$ per share