The shareholders' equity of Nick Co. includes the items shown below. The board of directors of Nick declared cash dividends of $4 million, $8 million, and $50 million in each of its first 3 years of operation: 2016, 2017, and 2018, respectively.

Preferred stock, 6%, at a total value of $100,000,000 Required:

Determine the amount of dividends given to preferred and common shareholders during each of the three years. The preferred stock is cumulative and nonparticipating.

6%*100,000,000=6m-2m=4m

	Dividends paid	Preferred shares	Common shares
2016	4 million
2017	8 million
2018	50 million