The Shareholders' Equity Section of the Balance Sheet of Crestor

question 48

Essay

The shareholders' equity section of the balance sheet of Crestor Ltd.follows:
Contributed capital:
$\begin{array}{lr}\text {Preferred shares, cumulative, \( \$ 3,4,000 \) shares outstanding, }&\$200,000\\\text { Common shares, 20,000 shares outstanding}&300,000\\\text {Retained earnings }&138,250\\\end{array}$

A) Assume that there were no dividends declared for the last two years. What is the total amount of the dividends that must be declared this year for the common shareholders to get a $1 per share dividend?
B) Assume that there were no dividends declared last year. What is the total amount of the dividends that must be declared this year for the common shareholders to get a $2 per share dividend?
C) Assume that there are no dividends in arrears. What is the total amount of the dividends that must be declared this year for the common shareholders to get a $3 per share dividend?

• A) Assume that there were no dividends declared for the last two years. What is the total amount of the dividends that must be declared this year for the common shareholders to get a $1 per share dividend?
• B) Assume that there were no dividends declared last year. What is the total amount of the dividends that must be declared this year for the common shareholders to get a $2 per share dividend?
• C) Assume that there are no dividends in arrears. What is the total amount of the dividends that must be declared this year for the common shareholders to get a $3 per share dividend?

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Definitions:

Team-based Pay

A compensation system where remuneration is based on the performance of a team rather than individual achievements.

Performance Programs

Structured initiatives designed to improve the performance of individuals or groups within an organization through targeted activities and assessments.

Operational Outcomes

Operational outcomes refer to the tangible and measurable results stemming from the operational activities of an organization, affecting its efficiency and effectiveness.

Group-oriented Incentive Systems

Reward structures designed to encourage and compensate teams or groups within an organization based on their collective performance.