McEwen Corporation began operations in 2018 with the following capital structure:1.
Common shares, Class A: 8,010,000 authorized and outstanding. The Class A common shares are entitled to 10 votes per share and to receive dividends as declared by the board of directors. Total share capital for the Class A common shares at the end of the year was $16,020,000.2.
Common shares, Class B: unlimited authorized; 990,000 issued and outstanding. Class B shares are entitled to one vote per share. The Class B shares receive dividends as declared by the board of directors equal to Class A shares. Total share capital for the Class B shares at the end of the year of $34,650,000.3.
Preferred shares: unlimited authorized; 3,440,000 issued and outstanding. The cumulative participating preferred shares are non-voting and received a preferential dividend of $0.16 per share per year. Total share capital for the preferred shares as at the end of the year was $17,200,000.1.McEwen Corporation did not declare any dividends in 2018 or 2019. What is the amount of dividends in arrears?
2018 2019Dividends in arrears at the end of year
$. $.2. Assume that McEwen has $10,000,000 available for dividend payments in 2020. What will be the total dividend paid to each of the preferred and Class A and B common shareholders as a class and on a per-share basis? (Round pro-rata allocation rate to 5 decimal places, e.g. 12.35764%. Round dividend per share to 3 decimal places, e.g. 15.257 and total dividend paid answers to 0 decimal places, e.g. 52,016.)To Preferred Shareholders To Common, Class A Shareholders To Common, Class B ShareholdersTotal dividend paid
$_____. $_____. $_____Dividend per share
$_____. $_____ $_____3.On average, what was the original share price for each class of shareholder?Class A common shareholders
$____ per shareClass B common shareholders
$____ per sharePreferred shareholders
$_____ per share4. What portion of the total available vote does each class of shareholder have? Prepare a table comparing the voting rights with the capital invested. (Round portion of votes to 2 decimal places, e.g. 10.25% and portion of capital contributed to 1 decimal place, e.g. 10.2%.)
Preferred Class A Common Class B Common TotalNumber of votes available to be cast
_____ _____ _____ _____. Portion of votes
_____% _____% _____% _____% Capital invested
_____ _____ _____ _____ Portion of capital contributed
_____% _____% _____% _____%
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