Question: 2 . Why were the dividends per common share were less for the second assumption? The total dividend amount and dividends per share of common

2 .

Why were the dividends per common share were less for the second assumption? The total dividend amount and dividends per share of common shares were less under the second assumption because the dividend rate for preferred shareholders was increased. The total dividend amount and dividends per share of common shares were less under the second assumption because the dividends in arrears on the preferred shares had to be fulfilled before dividends could be paid for the current year.

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