TR Dividends LO
On December X Watercress Properties Ltd reported the following in shareholders equity:
Preferred shares, nopar value; $ dividend, authorized, unlimited shares; issued, shares $
Common shares, nopar value; authorized, unlimited shares; issued, shares
Retained earnings
Dividends of $ are declared in X Consider the following three cases:
Preferred Cumulative? Year of Last Dividends Preferred Participating?
Case A No X No
Case B Yes X No
Case C Yes X Yes, after common receive $ per share; participation based on relative dividends at base level
Required:
Calculate dividends to be paid to preferred and common shares in each case. Do not round intermediate calculations.
