CHAPTER 18 (4.)

The shareholders equity of MLS Enterprises includes $180 million of no par common stock and $360 million of 5% cumulative preferred stock. The board of directors of MLS declared cash dividends of $40 million in 2018 after paying $16 million cash dividends in both 2017 and 2016. What is the amount of dividends common shareholders will receive in 2018? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Par Value Preferred Stock Dividend Rate (%) 7 Annual Preferred Dividend Annual Preferred Dividend: Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2016 2017 2018 Total