The shareholders' equity of MLS Enterprises includes $100 million of no par common stock and $200 million of 6% cumulative preferred stock. The board of directors of MLS declared cash dividends of $31 million in 2021 after paying $7 million cash dividends in both 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Annual Preferred Dividend: 2019 2020 2021 Total $ Par Value Preferred Stock $ 200 Total Cash Dividend Paid Answer is complete but not entirely correct. Annual Preferred Dividend 7,000,000 X 7,000,000 X 31,000,000 X 45,000,000 Dividend Rate (%) 6.0 % Paid to Preferred $ 7,000,000 X 7,000,000 X 22,000,000 X 36,000,000 $ Paid to Common 12✔ 0 0✔ 9,000,000 X 9,000,000 Dividends in Arrears at year- end 5,000,000 X 10,000,000 X
The shareholders' equity of MLS Enterprises includes $100 million of no par common stock and $200 million of 6% cumulative preferred stock. The board of directors of MLS declared cash dividends of $31 million in 2021 after paying $7 million cash dividends in both 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Annual Preferred Dividend: 2019 2020 2021 Total $ Par Value Preferred Stock $ 200 Total Cash Dividend Paid Answer is complete but not entirely correct. Annual Preferred Dividend 7,000,000 X 7,000,000 X 31,000,000 X 45,000,000 Dividend Rate (%) 6.0 % Paid to Preferred $ 7,000,000 X 7,000,000 X 22,000,000 X 36,000,000 $ Paid to Common 12✔ 0 0✔ 9,000,000 X 9,000,000 Dividends in Arrears at year- end 5,000,000 X 10,000,000 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The shareholders' equity of MLS Enterprises includes $100 million of no par common stock and $200 million of 6% cumulative
preferred stock. The board of directors of MLS declared cash dividends of $31 million in 2021 after paying $7 million cash dividends in
both 2020 and 2019.
What is the amount of dividends common shareholders will receive in 2021? (Enter your answers in millions (i.e., 10,000,000 should
be entered as 10).)
Annual Preferred
Dividend:
2019
2020
2021
Total
$
Par Value
Preferred
Stock
X Answer is complete but not entirely correct.
Annual
Preferred
Dividend
200
Total Cash
Dividend Paid
7,000,000
7,000,000
31,000,000
$ 45,000,000 $
Dividend Rate (%)
6.0
Paid to Preferred
%
7,000,000 X
7,000,000 X
22,000,000
36,000,000 $
Paid to
Common
12
0
0
9,000,000
9,000,000
Dividends in
Arrears at year-
end
5,000,000 X
10,000,000
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