Q7 (6 marks)

A publicly traded company that is held by many institutional investors has the following information:

Preferred shares, 8%, cumulative, and fully participating	$100,000
Contributed capital, preferred share retirement	65,000
Retained earnings	280,000
Common shares, unlimited number authorized, 40,000 issued and outstanding

The preferred share dividend was not paid in the previous year. The average share price for Common Shares is $12.50 per share.

Paid the annual dividend on the preferred shares. The common shares were then paid a $2.35 per share dividend. Round the participating percentage to four decimal places.

Net income for 2020 was $115,000.

Calculate the dividends that will be paid to the all Shareholders and show your calculations.