Question 4 Plushly Toys Co. has the following shares outstanding: 20,000, 8%, $10 non-cumulative, non-participating preferred shares 100,000 no-par value common shares Dividends have been paid every year except last year and the current year. If $100,000 is declared in total dividends in the current year, the preferred shareholders will receive: $16,000 $68,000 $100,000 $32,000 Question 6 Molitar Co. issued $4,000,000, 5-year, 8% convertible bonds at par. The bonds pay interest annually. Each $1,000 bond is convertible to 20 of Molitar's common shares, which are currently trading at $25 each. The current market rate for similar non-convertible bonds is 10%. Assuming Molitar follows IFRS, the value to be recorded in Bonds Payable when the bonds are issued is: $4,000,000 $3,696,737 $3,691,131 $4,319,417