Reference no: EM133042625
Question - The shareholders' equity section of the balance sheet of Bilat Corporation showed the following information:
10% Preference Share Capital, $100 par value,
$1,000,000 Ordinary Share Capital, $50 par value,
$1,000,000 Retained Earnings, $2,500,000
Bilat Corporation has not declared dividends only for last year. If the preference shares are cumulative and fully participating, what amount of dividend will a shareholder who owns 2,500 ordinary shares receive out of $1,180,000 cash dividends declared by Bilat Corporation?
A. 160000 B. 67500 C. 135000 D. 73750
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