Maria Inc’s share capital consists
of:
2,000 preferred shares outstanding, $6.50 per share dividend,
and a $100 stated (par) value;
5,000 common shares outstanding for which $300,000 was
received.
Assume that $88,000
is available for dividend distribution. Preferred shares have not
been paid for the two Preceding years.
Required:
For each situation below, state how
much of the $88,000 will be distributed to each share class.
Pref erred shares are cumulative and non-participating (3
mark)
Pref erred shares are cumulative...