The outstanding share capital of Sandhill Corporation consists of 1,800 shares of $100 par value, 7% preference, and 4,500 shares of $50 par value ordinary.
Assuming that the company has retained earnings of $86,500, all of which is to be paid out in dividends, and that preference dividends were not paid during the 2 years preceding the current year, determine how much each class of shares should receive under each of the following conditions.
(a) The preference shares are non-cumulative and non-participating. (Round answers to 0 decimal places, e.g. 38,487.)
Preference: $enter a dollar amount
Ordinary: $enter a dollar amount
(b) The preference shares are cumulative and non-participating. (Round answers to 0 decimal places, e.g. 38,487.)
Preference: $enter a dollar amount
Ordinary: $enter a dollar amount
(c) The preference shares are cumulative and participating. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to 0 decimal places, e.g. 38,487.)
Preference: $enter a dollar amount
Ordinary: $enter a dollar amount
