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Question 5 Windsor Inc. started its operations with the following share capital: 50,700, $3.00 preferred shares, and 244,400 common shares. For its first five years
Question 5
Windsor Inc. started its operations with the following share capital:
50,700, $3.00 preferred shares, and | ||
244,400 common shares. |
For its first five years of operations, dividends were declared and paid as follows.
Year 1 | $121,200 | ||
Year 2 | $112,800 | ||
Year 3 | $200,400 | ||
Year 4 | $152,100 | ||
Year 5 | $268,400 |
1)Determine how the dividends from each year would be allocated if the preferred shares were noncumulative.
Year Dividends pay Entitlement Paid Arrears Common
2) Determine how the dividends from each year would be allocated if the preferred shares were cumulative
Year Dividends pay Entitlement Paid Arrears Common
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