Ch. 18 Homework Question 2 10.00 points The shareholders\' equity of WBL Industr

Question

Ch. 18 Homework Question 2 10.00 points The shareholders' equity of WBL Industries includes the items shown below The board of directors of WBL declared cash dividends of S!l million, $21 million, and $160 million in its first three years of operation- 2016, 2017, and 2018, respectively (S in milions) $125 Common stock Paid-in capital excess of par, common 830 Preferred stock, 8% 250 Paid-in capital-excess of par, pefred 550 Required: Determine the amount of dividends to be pad to pretered and common shareholders in each of the three assuming that the preferred stock is cunulative and nonparticipating (Enter your answers irn millions (i.e., 10,000,000 should be entered as 10,) PreferredDividend Preferred Rate Total Cash Paid to Paid to Dividend Paid Preferred Common Arrears at 2016 2017 2018 Dmcutye 1 Easy esc 2 3 4 9

Explanation / Answer

Distribution of dividend :

Par value preferred stock dividend rate annual preferred dividend Annual preferred dividend 250 8% 20 Total dividend paid Paid to preferred Paid to common Dividends in arrears in year end 2016 11 11 9 2017 21 21 8 2018 160 28 132 Total 192 60 132

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---