Belagio Limited began 2016 with the following capital structure Common shares: Authorized: Unlimited number $250,000 Issued and outstanding: 100,000 shares Convertible Preferred shares: Series A Cumulative, $5 dividend rate, each preferred share is convertible into 3 common shares. Dividends are paid quarterly i.e $1.25 per quarter $100,000 Issued and outstanding: 20,000 share Convertible Bond: Series L $500,000 face value. Stated interest rate 4%. Due December 31st, 2018. Convertible into common shares any time prior to the conversion. Each 1,000 bond is convertible into 5 common shares. See below for interest expense for 2016 $480,000 Series A options: There were 30,000 options outstanding, which allowed executives to purchase 30,000 common shares at $30 per share up to 2020. During 2016, the following transactions occurred: February 1 Retired 10,000 common shares April 1 5,000 of the convertible preferred Series A shares were converted into 15,000 common shares. May 1st Sold an additional 20,000 common shares June 1 Issued another 10,000 options to senior executives which was entitled Series B Option. The option was exercisable until 2021 at an exercise price of $40 per share. July 1 Issued a new class of convertible cumulative preferred shares entitled Series B. 50,000 shares were issued. The dividend rate attached to the issue was $4 per share. Each preferred share is convertible into 3 common shares. Dividends are paid quarterly. March 31, lune 30, September 30 and December 30)