Patch Garden plans to distribute $134 000 in dividends.
It has 20,000 7 per cent preferred share (cumulative) originally issued at $10 and 60 000 ordinary shares.
How much will be distributed per share on preferred and ordinary shares?
a) Preferred shares $1.68; Ordinary shares $1.68
b) Preferred shares $3.35; Ordinary shares $1.12
c) Preferred shares $6.70; Ordinary shares $0
d) Preferred shares $0.70; Ordinary shares $2.00