2.50

Question 2 (4 points) Dividend Corporation has 20,000 common shares issued and outstanding. Dividend Corporation also has 10,000 $3 preferred shares issued and outstanding. The preferred are cumulative and partially participating up to an additional $2.50 per share and are 2 years in arrears. The matching dividend for the common shares is $2.00 per share. On December 1, 2020 Dividend Corporation declared a $200,000 cash dividend to the December 15 shareholders of record to be paid on December 31. The distribution of participating dividends is based on relative amount of base dividends. Required: Calculate the amount of the dividend that would be paid to each share class. (4 marks) Show all your calculations. Format BI U