The outstanding share capital of Martinez Corporation consists of 2,500 shares of preferred and 7,100 common sharesfor which $276,900 was received. The preferred shares carry a dividend of $6 per share and have a $100 stated value.Assuming that the company has retained earnings of $80,000 that is to be entirely paid out in dividends and thatpreferred dividends were not paid during the 3 years preceding the current year, state how much each class ofshares should receive if the preferred shares are non-cumulative and non-participating.DividendsPreferredeTextbook and MediaDividends$PreferredAssuming that the company has retained earnings of $80,000 that is to be entirely paid out in dividends and thatpreferred dividends were not paid during the 3 years preceding the current year, state how much each class ofshares should receive if the preferred shares are cumulative and non-participating.$eTextbook and Media(b)PreferredDividends $CommoneTextbook and Media$Common$Assuming that the company has retained earnings of $80,000 that is to be entirely paid out in dividends and thatpreferred dividends were not paid during the 3 years preceding the current year, state how much each class ofshares should receive if the preferred shares are cumulative and participating. (Round answers to 0 decimalplaces, e.g. 5,275.)Common$(a) The preferred shares are non-cumulative and non-participating.TotalThe preferred shares are cumulative and non-participating.$(c) The preferred shares are cumulative and participating.Payout RatioTotalAssume that Martinez's current year net income was $94,700. Calculate the current year payout ratio under eachof the conditions below. (Round answers to 2 decimal places, e.g. 52.75.)$Total$

Dividend: The dividend refers to the part of the company's earnings which is to be distributed to…

Answered: The outstanding share capital of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The outstanding capital stock of Cleary Corporation consists of 2,000 shares of $100 par value, 8% preferred, and 5,000 shares of $50 par value common. Assuming that the company has retained earnings of $90,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. a. The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. 38,487.) $ $ Preferred b. The preferred stock is cumulative and nonparticipating. (Round answers to 0 decimal places, e.g. 38,487.) 65 Preferred $ Preferred $ Common c. The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to O decimal places, e.g. 38,487.) $ Common Common
Massive Corp. is authorized to Issue unlimited $0.80 no-par preferred shares and unlimited no-par common shares. There are 15,000 preferred and 45,000 common shares outstanding. In a five-year period, annual dividends pald were $2,000, $6,000, $86,000, $5,000, and $172,000, respectively. Required: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00.
Keener Company has had 900 shares of 7%, $100 par preferred stock and 42,000 shares of $5 stated-value common stock outstanding for the last 3 years. During that period, dividends paid totaled $4,800, $28,500, and $31,500 for each year, respectively. Required: Compute the amount of dividends that Keener must have paid to preferred shareholders and common shareholders in each of the 3 years, given the following assumption: If an amount is zero, enter "0". - Preferred stock is fully participating and cumulative.
Halverstein Company's outstanding stock consists of 10,850 shares of cumulative 5% preferred stock with a $10 par value and 4,650 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 0 Year 2 $ 9,300 Year 3 $ 40,000 The amount of dividends paid to preferred and common shareholders in Year 2 is:
A. Diaz Corporation, a distributor of exercise equipment, has the following outstanding shares: 18,000 shares of 2% cumulative preference shares, P75 par and 40,000 shares of P10 par ordinary shares. During its first four years of operations, the following amounts were distributed as dividends: first year, P22,500; second year, P28,800; third year, P40,100; fourth year, P77,000. Calculate the dividends per share on each class of shares for the first year
Stockholders' equity of Ernst Company consists of 80,000 shares of $5 par value, 10% cumulative preferred stock and 280,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $125,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Calculation of preferred dividend: Total cash dividend To preferred shareholders To common shareholders Par Value per Preferred Share Dividend Rate % Dividend per Preferred Share Number of Preferred Shares Preferred Dividend for two years
Al Anwar Company has 10,000 shares authorized, OMR2 par value, 4,000 shares issued and outstanding ordinary shares and 5% cumulative, non-participating. 7,000 shares authorized, OMR100 par value, 1000 shares issued and outstanding preference shares. Assume that AL Anwar did not declare dividends for the previous 2 years. The company declared a total of OMR10,000 cash dividend in the current year. How much dividend would be paid to ordinary shareholders?
s
Sweet Company’s outstanding stock consists of 1,700 shares of cumulative 5% preferred stock with a $100 par value and 10,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 2,700 Year 2 $ 6,700 Year 3 $ 35,500 The total amount of dividends paid to preferred and common shareholders over the three-year period is: Multiple Choice $8,500 preferred; $36,400 common. $15,200 preferred; $29,700 common. $25,500 preferred; $19,400 common. $19,700 preferred; $25,200 common. $17,000 preferred; $27,900 common.
Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with a $100 par value and 11,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 3,700 Year 2 $ 9,400 Year 3 $ 40,500 The total amount of dividends paid to preferred and common shareholders over the three-year period is:
Massive Corp. is authorized to issue unlimited $0.80 no- par preferred shares and unlimited no par common shares. There are 18,000 preferred and 54,000 common shares outstanding. In a five-year period, annual dividends paid were $1,000, $4,000, $71,000, $6,000, and $142, 000, respectively. Required: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00. Case A Preferred shares are cumulative and non-participating. Case B Preferred shares are non - cumulative and non - participating. Case C Preferred shares are non - cumulative and fully participating. Participation is based on the relative number of shares outstanding. Case D Preferred shares are non - cumulative and partially participating up to an additional $0.80 per share. Participation is based on relative annual total base dividends. ( Round allocation percentages values to nearest whole percent
provide answer for A, B and C

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