Solve the amount of dividends that would be paid

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Point 1: Massive Corp. is authorized to issue unlimited $0.60 no-par preferred shares and unlimited no-par common shares. There are 16,000 preferred and 48,000 common shares outstanding. In a five-year period, annual dividends paid were $3,000, $3,000, $85,000, $4,000, and $170,000, respectively.

Required:

Question 1: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00.

  • Case C Preferred shares are non-cumulative and fully participating. Participation is based on the relative number of shares outstanding.

1

 

Total Paid       Preferred     Common

Current

°. $       3,000      $   3,000

$          0

2

Current

$      3,000r $     3,000

$

3

Current

 

¦

$     9,600

$           0

 

Matching

 

$           0

¦   48,000

 

Balance

 

 

 

 

Total

$ 57,600

$      9,600    $ 48,000

4

Current

b $   4,000r

$     4,000

r $       01

5

Current

 

¦ $   9,600

$           0

 

Matching

 

°. $              0

48,000

 

Balance

 

 

 

 

Total

$ 57,600

$      9,600    $ 48,000

Reference no: EM132476635

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