The following information is presented about the capital structure of Norwood Inc (Norwood) at the beginning of January 1, 2020 Common Shares 2 million authorized shares 1 5 million shares issued and outstanding The total amount paid for these shares was $1,500,000 Cumulative Preferred shares Unlimited number authorized, 2 0 million shares issued and outstanding Each share is entitled to an annual dividend of $0 40 per share These shares were issued for $10,000,000 Dividends were last declared was December 31, 2018 At that time the preferred and common shareholders received dividends i) On May 1 st the company issued 150,000 common shares at $5 per share ii) On June 1 the company declared and paid a dividend to large enough to satisfy all dividends owing to the preferred shares up to and including December 31, 2020 iii) On June 30 th the company declared a 7 common stock dividend issuable on July 27, 2020 The common shares were trading at $9 50 per share If the directors of Norwood wish to pay each common shareholder a cash dividend of $0 50 share in November 2020, calculate the total amount of cash that the company will have to pay

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Posted on Sep 30, 2024

The following information is presented about the capital structure of Norwood Inc. (Norwood) at the beginning of January 1, 2020: Common Shares: 2 million authorized

The following information is presented about the capital structure of Norwood Inc. (Norwood) at the beginning of January 1, 2020:

Common Shares: 2 million authorized shares; 1.5 million shares issued and outstanding. The total amount paid for these shares was $1,500,000.
Cumulative Preferred shares: Unlimited number authorized, 2.0 million shares issued and outstanding. Each share is entitled to an annual dividend of $0.40 per share. These shares were issued for $10,000,000.
Dividends were last declared was December 31, 2018. At that time the preferred and common shareholders received dividends.
i) On May 1^st the company issued 150,000 common shares at $5 per share

ii) On June 1 the company declared and paid a dividend to large enough to satisfy all dividends owing to the preferred shares up to and including December 31, 2020.

iii) On June 30^th the company declared a 7% common stock dividend issuable on July 27, 2020. The common shares were trading at $9.50 per share.

If the directors of Norwood wish to pay each common shareholder a cash dividend of $0.50/share in November 2020, calculate the total amount of cash that the company will have to pay.