The shareholders\' equity of Crystal Company includes the items shown below. The

Question

The shareholders' equity of Crystal Company includes the items shown below. The board of directors of Crystal declared cash dividends of $2.2 million, $6.0 million, and $46.8 million in each of its first three years of operation: 2016, 2017, and 2018, respectively.

Common stock, $1 par, 50,000,000 shares outstanding

Preferred stock, 6%, $100 par, 1,000,000 shares outstanding

Required:
Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is cumulative and nonparticipating. (Round final answers to 2 decimal places.)

Year Preferred Common 2016 2017 2018

Explanation / Answer

Calculate Distribution of dividend :

Annual dividend = (1000000*100*6%)/1000000= 6 million per year

Preferred Common Total 2016 2.2 2.2 2017 6 6 2018 9.8 37 46.8

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