Holt Company paid out cash dividends at the end of each year as follows:
Year Dividends
2009………………………………… $150,000
2010………………………………… $175,000
2011………………………………… $250,000
Required:
a. Assuming that Holt had 250,000 no par value common shares and 10,000 no par value, $7, non-cumulative preferred shares, how much cash would be paid out in 2009, 2010, and 2011 to each class of shares?
b. Assuming that Holt had 100,000 no par value common shares, and 5,000 no par value, $4, cumulative preferred shares that were three years in arrears as at January 1, 2009, how much cash would be paid out in 2009, 2010, and 2011 to each class of shares?