Katie Corporation, based in Liverpool, has 20,000 preferred shares outstanding of no par value $2 dividend and
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Question:
Katie Corporation, based in Liverpool, has 20,000 preferred shares outstanding of no par value $2 dividend and 40,000 common shares outstanding of no par value.
In its first years of operation, the company paid the following dividends:
2010 .............$0
2011 .............$46,000
2012 ............. $78,000
2013 ............. $0
2014 ............. $82,000
Calculate the dividends paid to preferred and common shareholders in each of the five years under the following three independent situations:
a. Preferred shares are noncumulative and nonparticipating.
b. Preferred shares are cumulative and nonparticipating.
c. Preferred shares are cumulative and fully participating.
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