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Princess Company has the following shareholders equity on its balance sheet: Shareholders Equity Preferred shares, $9 cumulative, 4,000 issued and outstanding Common shares, 50,000 issued and outstanding Retained earnings Total shareholders equity 4. $400,000 2,600,000 460,000 3,460,000 a. Calculate the total annual preferred dividend entitlement b. Calculate the total amount of contributed capital. c. If the company paid total dividends of S120,000 in the year, and there were no preferred dividends owing from past years, how much did the common shareholders receive per share? Calculate the market price of the common shares. Which shareholders have the right to vote for the Board of Directors? d. e.
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Preferred shares outstanding Preferred dividend per share Annual preferred dividend entitlement$36,000 [4,000 x $9)] $9 Requirement-(bl: Contributed capital Preferred shares issued & outstanding+ Common shares issued & outstanding Preferred shares issued & outstanding Common shares issued & outstanding Total contributed capital $400,000 $2,600,000 $3,000,000 Requirement-(c $120,000 Total dividends paid Less: Preferred dividends-current year-$36,000 [Ref: Requirement-(a)] Less: Preferred dividends - arrears Dividends to the common shareholders $84,00D [Given that there are no arrears]Common shares issued & outstanding # of shares issued and outstanding Market price of the common shares $2,600,000 50,000 $52 [$2,600,000/50,000 shares] Requirement-lel: Only common shareholders have the right to vote for the Board of Directors

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