The shareholders’ equity of MLS Enterprises includes $240 million of no par comm

Question

The shareholders’ equity of MLS Enterprises includes $240 million of no par common stock and $480 million of 5% cumulative preferred stock. The board of directors of MLS declared cash dividends of $52 million in 2018 after paying $22 million cash dividends in both 2017 and 2016.

What is the amount of dividends common shareholders will receive in 2018? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Answer is complete but not entirely correct.

Par Value Preferred Stock Dividend Rate (%) Annual Preferred Dividend Annual Preferred Dividend: $0selected answer incorrect 5.0%selected answer correct $24,000,000selected answer incorrect Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2016 22,000,000selected answer incorrect 22,000,000selected answer incorrect 0selected answer correct 2,000,000selected answer incorrect 2017 22,000,000selected answer incorrect 22,000,000selected answer incorrect 0selected answer correct 2,000,000selected answer incorrect 2018 52,000,000selected answer incorrect 28,000,000selected answer incorrect 24,000,000selected answer incorrect 0selected answer correct Total $96,000,000 $72,000,000 $24,000,000

Explanation / Answer

Dividends per year for preferred stocks=($480million*5%)=$24milllion

Well, your answer must be correct. There must be en error that it showing wrong answer to you because my values are same too !!!

Paid to preferred Paid to common Dividends in arrears at year end 2016 $22 million 0 $ 2 million 2017 $22 million 0 $ 2 million 2018 $(4+24)=$28million 52-28=$24 million 0 Total $ 72 million $ 24 million 0

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