Reference no: EM132550550

Question - Ayayai, Ltd. has 12,000 outstanding no par value $1.00 preferred shares issued for $120,000 and 46,000 outstanding no par value common shares issued for $32,200.

No dividends were paid or declared during 2020 and 2021. Ayayai wants to distribute $42,264 in dividends on December 31, 2022.

1. Calculate the amount of dividends to be paid to each group of shareholders (i.e., preferred and common), assuming the preferred shares are non-cumulative and non-participating.

2. Calculate the amount of dividends to be paid to each group of shareholders (i.e., preferred and common), assuming the preferred shares are cumulative and non-participating.

3. Calculate the amount of dividends to be paid to each group of shareholders (i.e., preferred and common), assuming the preferred shares are cumulative and fully participating.