Question
The shareholders equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $4 million, $13 million,
The shareholders equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $4 million, $13 million, and $140 million in its first three years of operation2018, 2019, and 2020, respectively. ($ in millions) Common stock $ 100 Paid-in capitalexcess of par, common 920 Preferred stock, 5% 200 Paid-in capitalexcess of par, preferred 640 Required: Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Enter the amounts in the chart above.
Par Value Preferred Stock Dividend Rate Annual Preferred Dividend Annual Preferred Dividend: S 200 5.0%S 10 Dividends in Arrears at year-end Total Cash Paid to Paid to Dividend Paid Preferred Common 2018 2019 2020 Total 4 13 140 157 S 4 13 42 59S 140 140Step by Step Solution
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