Questlion 11 (o 11. 0.00 points Exercise 18-10 Effect of cumulative, nonparticip

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Questlion 11 (o 11. 0.00 points Exercise 18-10 Effect of cumulative, nonparticipating preferred stock on dividends-3 years LO The shareholders' equity of WBL Industries includes the items shown below The board of directors of WBL declared cash dividends of $6 million, $59 million, and $180 milion in its first three years of operation- 2016, 2017, and 2018, respectively Common stock Paid-in capital excess of par, common Preferred stock, 8% Paid in capital-excess of par, preferred 570 (S in millions) $ 75 850 150 Required: Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the pretered stock millions i.e., 10.000,000 should be entered as 10)) is cumulative and nonparticipating (Enter your answers in Dividend Preferred Total Cash Paid to Dividend Paid Preferred Common Paid to Arrears at 2017 2018 Total References eBook & Resources Expecise 1B-10 Etect ot cunwlative preferred stock on dividends 3 years L918-41 TOSHIBA esc 2 3 4 5

Explanation / Answer

par value dividend annual preferred rate preferred Stock dividends Annual preferred dividends 150 8% 12 total cash paid to paid to Dividend dividend preferred common in arrears paid at yr end 2016 6 6 6 2017 9 9 9 2018 180 21 159 0 total 195 36 159 15

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