Lightfoot Inc., a software development firm, has stock outstanding as follows: 40,000 shares of cumulative preferred 1% stock, $125 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. 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"

#1   Preferred $ 0.90 per share

     Common  $  0

#2  Peferred  $ 1.45

     Common  $  0

#3  Peferred  $  1.40

     Common  $ 0.90

#4  Peferred  $  1.25

     Common  $ 0.74

Explanation:

40,000 shares x $125 each x 1% = $ 50,000 preferred dividen per year

year 1: 36,000  declared thus, the difference 14,000 will be in arrears as the preferred stock are cummulative

36,000 / 40,000 = 0.9

year 2: 58,000 less 50,000 current = 8,000 remains for the arrears

58,000 / 40,000 = 1.45

year 3: 75,000 less 50,000 current preferred and 6,000 in arrears

this leaves 29,000 for common stock

56,000 / 40,000 = 1.40

and then: 29,000 / 100,000 = 0.29

#4 124,000 less 50,000 preferred leaves 74,000 for common

50,000 / 40,000 = 1.25

74,000 / 100,000 = 0.74

the answer should be a)