Question

I NEED URGENT HELP PLEASE, MY ASSIGNMENT IS DUE IN HALF AN HOUR. THANK YOU IN ADVANCE!!

Current Attempt in Progress E. MacGill Inc. paid out cash dividends at the end of each year as follows: Year Dividends 2018 $525,000 2019 $567,000 2020 $676,000 Assume that MacGill had issued 98,000 common shares and 23,000,9%, non-cumulative preferred shares with a share capital of $1,380,000. How much cash would be paid out in 2018, 2019 and 2020 as dividends to each class of shares? Preferred Common Year 2018 $ 2019 $ 2020 $ $ $ $ $ $ $ eTextbook and Media Assume that MacGill had issued 48,000 common shares with share capital of $5,280,000 million, and 20,000,7% cumulative, preferred shares that were two years in arrears as at January 1, 2018, with a share capital of $2,500,000. How much cash would be paid out in 2018, 2019 and 2020 as dividends to each class of shares? Preferred Common Year 2018 $ 2019 $ 2020 $ $ $ $ to toto

I need Answers for all 3 columns; Preferred, Common and Total.

Answer 1

Requirement 1:

Preferred Dividend (every year) = Preferred share capital * Stated Rate of Interest

= $1,380,000 * 9%

= $124,200

Common Dividend = Total cash dividend paid - Preferred Dividend

Year	Preferred	Common	Total
2018	$ 124,200	$ 400,800	$ 525,000
2019	$ 124,200	$ 442,800	$ 567,000
2020	$ 124,200	$ 551,800	$ 676,000

Requirement 2:

Annual Preferred Dividend = Preferred share capital * Stated Rate of Interest

= $2,500,000 * 7%

= $175,000

Preferred Dividend (2018) = Annual Preferred Dividend * 3 years (2 years in arrears)

= $525,000

Year	Preferred	Common	Total
2018	$ 525,000	$                  -	$ 525,000
2019	$ 175,000	$ 392,000	$ 567,000
2020	$ 175,000	$ 501,000	$ 676,000

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