Question
Ayayai Limiteds ledger shows the following balances on December 31, 2020: Preferred shares outstanding: 15,000 shares $ 300,000 Common shares outstanding: 30,000 shares 2,100,000 Retained
Ayayai Limiteds ledger shows the following balances on December 31, 2020:
Preferred shares outstanding: 15,000 shares $ 300,000 Common shares outstanding: 30,000 shares 2,100,000 Retained earnings 570,000
Assuming that the directors decide to declare total dividends in the amount of $285,000, determine how much each class of shares should receive if the preferred shares are cumulative and fully participating. Note that one years dividends are in arrears on the preferred shares, which pay a dividend of $1.00 per share. (Round intermediate percentage calculations to 4 decimal places, e.g. 12.2525% and final answers to 0 decimal places, e.g. 5,275.)
Preferred Common Total Dividend $enter a dollar amount $enter a dollar amount $enter a dollar amount
Assuming that the directors decide to declare total dividends in the amount of $285,000, determine how much each class of shares should receive if the preferred shares are noncumulative and nonparticipating. Note that one years dividends are in arrears on the preferred shares, which pay a dividend of $1.00 per share. (Round answers to 0 decimal places, e.g. 5,275.)
Preferred Common Total Dividend $enter a dollar amount $enter a dollar amount $enter a dollar amount
Assuming that the directors decide to declare total dividends in the amount of $285,000, determine how much each class of shares should receive if the preferred shares are noncumulative and are participating in distributions in excess of a 7% dividend rate on the common shares. Note that one years dividends are in arrears on the preferred shares, which pay a dividend of $1.00 per share. (Round intermediate percentage calculations to 4 decimal places, e.g. 12.2525% and final answers to 0 decimal places, e.g. 5,275.)
Preferred Common Total Dividend $enter a dollar amount $enter a dollar amount $enter a dollar amount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started