Holt Company paid out cash dividends at the end of each year as follows Year Div

Question

Holt Company paid out cash dividends at the end of each year as follows Year Dividends 2014 $265,000 2015 $354,000 2016 $402,000 Assume that Holt had 240,000 common shares and 10,000, $8, non-cumulative preferred shares. How much cash would be paid out in 2014, 2015, and 2016 to each class of shares? ear Prefer Common Total 2014 $ 2015 $ 2016 LINK TO TEX 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? ear Preferr Common Tota 2014 2015 $ 2016 $

Explanation / Answer

1 Annual preferred dividends = 10000*8 = 80000 Preferred Common Total 2014 80000 185000 265000 2015 80000 274000 354000 2016 80000 322000 402000 2 Annual preferred dividends = 6000*3 = 18000 Preferred Common Total 2014 72000 193000 265000 2015 18000 336000 354000 2016 18000 384000 402000

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