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Question - Amrit Corporation has outstanding share capital consists of Preferred shares outstanding: 3,000 shares $300000
Common shares outstanding: 7,000 shares $280.000
The preferred shares carry a dividend of $4 per share and have a $100 stated value. The company decided to pay $105,000 in dividends and that preferred dividends were not paid during the two years preceding the current year, state how much each class of shares should receive under each of the following condition.
Required -
1. What the preferred shares are cumulative and non-participating.
2. What the preferred shares are cumulative and participating.
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