The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $16 million, $35 million, and $100 million in its first three years of operation - 2021, 2022, and 2023, respectively. ($ in millions) Common stock $175 Paid-in capital -excess of par, common 990 Preferred stock, 8% 350 Paid-in capital-excess of par, preferred 500 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 non participating. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Per Value Dividend Rate Annual Preferred Preferred Stock Dividend Annual Preferred Dividend: _________ ___________ % __________________ __________ Total Cash Paid to Paid to Dividends in Dividend Paid Preferred Common Arrears at Year-end 2021 ___________ _______ ________ _________ 2022 ___________ ________ ________ _________ 2023 ___________ ________ ________ _________ Total $ 0 $ 0 $ 0
The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $16 million, $35 million, and $100 million in its first three years of operation - 2021, 2022, and 2023, respectively.
($ in millions)
Common stock $175
Paid-in capital -excess of par, common 990
Paid-in capital-excess of par, preferred 500
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 non participating. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Per Value
Preferred Preferred
Stock Dividend
Annual Preferred Dividend: _________ ___________ % __________________ __________
Total Cash Paid to Paid to Dividends in
Dividend Paid Preferred Common Arrears at
Year-end
2021 ___________ _______ ________ _________
2022 ___________ ________ ________ _________
2023 ___________ ________ ________ _________
Total $ 0 $ 0 $ 0 _________
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