Use the following information to find dividends paid to common stockholders duri

Question

Use the following information to find dividends paid to common stockholders during 2012. (Input all amounts as positive values. Enter your answers in millions.)

2012

  Balance of retained earnings, December 31, 2011 $ 496 m

     Plus: Net income for 2012                                             50 m

     Less: Cash dividends paid

              Preferred stock                                               $ 2 m

              Common stock                                                  m

        Total cash dividends paid                                                   m

  Balance of retained earnings, December 31, 2012 $ 526 m

Explanation / Answer

Dividends paid to common stock holder=18 m

Working:

Balance of retained earning=496 m

Add: income= 50 m

Total=496+50=546

Balance of retained earning on 31 ,2012= 526

So,total dividend paid=546-526=20

Preferred stock paid=2 m

So,balance left 18 m(20-2) paid to common stock holder....

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