Question #2.

(16 marks)

Total equity (Beginning) $5615

Total equity (Ending) 5884

NI 838

C/S issued 383

Dividends 434

Preferred dividends 40

C/S repurchased 301

Retirement of P/stock 37

(Note: all the numbers are dollar amounts)

Required:

Let D be the net payments to shareholders. Calculate D (4 marks)

Let CI be comprehensive income and OCI be other comprehensive income. Calculate OCI. Note that CI=NI + OCI.

OCI (6 marks)

CI (2 marks)

Let CHANGE IN BV be the change in Total equity. Show that the data satisfy the clean surplus restriction: CHANGE IN BV=CI-D(4 marks)