How much will the preferred and common shareholders

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Question - Bill Inc., has $400,000, $0.70, no par value preferred shares (40,000 shares issued) and $600,000 of no par value common shares outstanding (60,000 shares issued). No dividends declared during 2018 and 2019. As of December 31, 2020, it is desired to distribute $170,000 in dividends.

How much will the preferred and common shareholders each receive, assuming the preferred shares are cumulative and fully participating?

How much will the preferred and common shareholders each receive, assuming the preferred shares are cumulative and participating to 11% total?

Reference no: EM132844263

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