Massive Corp. is authorized to Issue unlimited $0.80 no-par preferred shares and unlimited no-par common shares.There are 15,000 preferred and 45,000 common shares outstanding. In a five-year period, annual dividends paidwere $2,000, $6,000, $86,000, $5,000, and $172,000, respectively.Required:Calculate the amount of dividends that would be paid to each share class for each year under the followingseparate cases. Where applicable, the matching dividend per common share is $1.00.Case A Preferred shares are cumulative and non-participating.Year1234523PartialPartialstArrearsCurrentTotalPartialArrearsCurrentTotal45Total Paid Preferred Common$$0 S0 S0 $Year Total Paid Preferred Common10 $Case B Preferred shares are non-cumulative and non-participating.00 Case C Preferred shares are non-cumulative and fully participating. Participation is based on the relative number ofshares outstanding.Year1 Current2345Year123CurrentCurrent45MatchingBalanceTotalCurrentCurrentMatchingBalanceTotalCase D Preferred shares are non-cumulative and partially participating up to an additional $0.80 per share.Participation is based on relative annual total base dividends. (Round allocation percentages values to nearestwhole percent.)Total Paid Preferred CommonCurrentCurrentCurrentMatchingBalanceTotalCurrentCurrentMatchingBalanceTotalTotal Paid Preferred Common

Solution: Case a. year Total paid preferred common 1. Partial $ 2000 $ 2000 2.…

Massive Corp. is authorized to Issue unlimited $0.80 no-par preferred shares and unlimited no-par common shares. There are 15,000 preferred and 45,000 common shares outstanding. In a five-year period, annual dividends pald were $2,000, $6,000, $86,000, $5,000, and $172,000, respectively. Required: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00. Case A Preferred shares are cumulative and non-participating.

Massive Corp. is authorized to Issue unlimited $0.80 no-par preferred shares and unlimited no-par common shares. There are 15,000 preferred and 45,000 common shares outstanding. In a five-year period, annual dividends pald were $2,000, $6,000, $86,000, $5,000, and $172,000, respectively. Required: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00. Case A Preferred shares are cumulative and non-participating.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blossom Inc. had net income for the current year ending December 31, 2023 of $1.230,480. During the entire year, there were 506,000 common shares outstanding. The company had two classes of preferred shares outstanding the Class A preferred shares were $2.62 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 102,000 $5.62 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Blossom had outstanding a $1,000,000, 8% bond issued in 2012 that was convertible to 21,000 common shares. The company also had outstanding a $1,000,000, 7% bond issued in 2013 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Blossom's tax rate is 38%.
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The outstanding share capital of Flounder Corporation consists of 2,000 shares of $100 par value, 9% preference, and 5,200 shares of $50 par value ordinary. Assuming that the company has retained earnings of $82,500, all of which is to be paid out in dividends, and that preference dividends were not paid during the 2 years preceding the current year, determine how much each class of shares should receive under each of the following conditions. (a) The preference shares are non-cumulative and non-participating. (Round answers to O decimal places, e.g. 38,487.) $ $ Preference (b) The preference shares are cumulative and non-participating. (Round answers to O decimal places, e.g. 38,487.) $ Preference $ Preference $ Ordinary (c) The preference shares are cumulative and participating. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to O decimal places, e.g. 38,487.) $ Ordinary Ordinary
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