The shareholders\' equity of Nick Co. includes the items shown below. The board

Question

The shareholders' equity of Nick Co. includes the items shown below. The board of directors of Nick declared cash dividends of $3.5 million, $14.5 million, and $46.5 million in each of its first 3 years of operation: 2016, 2017, and 2018, respectively.

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

Preferred stock, 5%, $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 noncumulative and nonparticipating. (Round final answers to 2 decimal places.)

Explanation / Answer

Determine the amount of dividends per share on preferred and common stock for each of the three years.

Preferred dividend Preferred dividend per share Common dividend Common dividend per share Total dividend 2016 $3.5 million $3.5 0 0 3.5 2017 $5 million $5 $9.5 million 0.19 14.5 2018 $5 $5 $41.5 million 0.83 46.5

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.