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Exercise 15 - 6 McNamara Limited's ledger shows the following balances on December 31 , 2014 : Preferred Shares Outstanding : 25, 000 shares $625,

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Exercise 15 - 6 McNamara Limited's ledger shows the following balances on December 31 , 2014 : Preferred Shares Outstanding : 25, 000 shares $625, 000 Common Shares Outstanding : 40, 000 shares $3, 000, 000 Retained Earnings $890 , 000 Assuming that the directors decide to declare total dividends in the amount of $ 4 45, 000 , determine how much each class of shares should receive under each of the conditions that follow . Note that one year's dividends are in arrears on the preferred shares , which pay a dividend of $ 1. 50 per share . a . The preferred shares are cumulative and fully participating . 6 . The preferred shares are non - cumulative and non - participating . c. The preferred shares are non - cumulative and are participating in distributions in excess of a 10% dividend rate on the common shares

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