Holt Company paid out cash dividends at the end of each year as follows 2014 $23

Question

Holt Company paid out cash dividends at the end of each year as follows 2014 $231,000 2015 $351,000 2016 $369,000 Assume that Holt had 280,000 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? 2014 2015 2016 $ Assume that Holt had 90.000 common shares, and 5,000 $5, 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? 2014 $ 2015 2016 $

Explanation / Answer

1 Annual preferred dividends = 10000*7 = 70000 Preferred Common Total 2014 70000 161000 231000 2015 70000 281000 351000 2016 70000 299000 369000 2 Annual preferred dividends = 5000*5 = 25000 Preferred Common Total 2014 100000 131000 231000 2015 25000 326000 351000 2016 25000 344000 369000

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