* Question 1 Holt Company paid out cash dividends at the end of each year as fol
ID: 2554328 • Letter: #
Question
* Question 1 Holt Company paid out cash dividends at the end of each year as follows: ear Divi 2014 $272,000 2015 310,000 2016 $432,000 Assume that Holt had 270,000 common shares and 10,000, $7, non-cumulative preferred shares. How much cash would be paid out in 2014, 2015, and 2016 to each class of shares? ear Preferred Common Total 2014 2015 2016 Assume that Holt had 110,000 common shares, and 6,000, $3, cumulative preferred shares that were three years in arrears as at January 1, 2014. How much cash would be paid out in 2014, 2015, and 2016 to each class of shares? Preferred Common Tota car 2014 2015 2016Explanation / Answer
Answer
1.
Annual preferred dividend = 10,000 x $7 = $70,000
2.
Annual preferred dividend = 6,000 x $3 = $18,000
In 2014: Preferred dividend in arrear = $18,000 x 3 = $54,000
Total 18000+54000 =$72000
Year Preferred Common Total 2014 $70000 $202000 $272000 2015 $70000 $240000 $310000 2016 $70000 $362000 $432000Related Questions
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