Pies (Explaining the differences between preferred shares, LO 2) Exhibit 11-3 (page 667) provides a description of Bank of Montreal’s preferred shares. Class B— Series 4 and 5 were both issued in 1998 and have very similar features, yet the Series 5 shares pay a dividend that is about $0.13 more per year than the Series 4 shares.

Examine the features of the Class B—Series 4 and Series 5 preferred shares and provide some possible explanations for why the dividends on the shares are different but they were sold for the same price.