Determine the amount of dividends payable

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The shareholders' equity of Kramer Industries includes the data shown below. During 2019, cash dividends of $220 million were declared. Dividends were not declared in 2017 or 2018.

($ in millions)Common stock$260

Paid-in capital-excess of par, common 1,040

Preferred stock, 10%, nonparticipating 130

Paid-in capital-excess of par, preferred 390

Required:

Question 1: Determine the amount of dividends payable to preferred shareholders and to common shareholders under each of the following two assumptions regarding the characteristics of the preferred stock. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

 

Reference no: EM132486211

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