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CP 11–8

14 August, 2015 - 17:32

Landers Flynn Inc. has 1,000, $5 cumulative preferred shares outstanding. Dividends were not paid last year. The corporation also has 5,000 common shares outstanding. Landers Flynn declared a $14,000 cash dividend to be paid in the current year.

Required: Calculate the amount of dividends received by

  1. the preferred shareholders;
  2. the common shareholders.