Assume that the Bell Company declares dividends in 2014, 2015 and 2016.

- Dividends were $244,000, $378,500, and $247,750, respectively.

- Determine the dividend to be paid based on the three independent structures (A,B,C):

 A - 45,000 preferred shares @ $88 par value at 7% cumulative and 245,000 common shares @ $45 par value

B - 52,500 preferred shares @ $102 par value at 5.5% cumulative and 298,600 common shares @ $34 par value

C - 34,000 shares of preferred stock @ $95 par value at 7.75% non-cumulative and 195,800 shares of common stock @ $68 par value 

Transcribed Image Text:

A 2014 2015 2016 Dividend to preferred Shareholders 45,000 @ $88 (7%) cummulative Dividend to Common Shareholders 245,000 Total Dividends A 2014 2015 2016 Dividend to preferred Shareholders 45,000 @ $88 (7%) cummulative Dividend to Common Shareholders 245,000 Total Dividends

Answer rating: 100% (QA)

SOLUTION To determine the dividends to be paid based on the three independent structures A B C we need to calculate the dividend amounts for preferred shareholders and common shareholders separately f... View the full answer