How much cach class of shares should receive

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The outstanding share capital of Penningtororation consists of 14,000 shares of $100 par value, 10% prefereuc-, and 70,000 shares of $10 par value ordinary.

Instructions

Problem 1: Assuming that the company has retained earnings of $140,000, oll of which is to be paid out in dividends, and that preference dividends wele not paid last year, determine how much cach class of shares should receive under each of the following conditions.

1. The preference shares are non-cumulative and non-participating.

2. The preference shares are cumulative and non-participating.

3. The preference shares ate cumulative and participating. (Round dividend rate percentages to four decimal places.)

Reference no: EM132906737

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