The outstanding share capital of Flint Corporation consists of 3,300 shares of preferred and 7,400 common shares for which $281,200 was received. The preferred shares carry a dividend of $7 per share and have a $100 stated value.

A) Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are non-cumulative and non-participating.

	Preferred	Common	Total
Dividends

B) Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are cumulative and non-participating.

	Preferred	Common	Total
Dividends

C) Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are cumulative and participating. (Round answers to 0 decimal places, e.g. 5,275.)

	Preferred	Common	Total
Dividends

D) Assume that Flints current year net income was $93,000. Calculate the current year payout ratio under each of the conditions below. (Round answers to 2 decimal places, e.g. 52.75.)

a)The preferred shares are non-cumulative and non-participating.

b)The preferred shares are cumulative and non-participating.

c)The preferred shares are cumulative and participating.