Question

The shareholders' equity of MLS Enterprises includes $300 million of no par common stock and $600 million of 6 % cumulative preferred stock. The board of directors of MLS declared cash dividends of $74 million in 2018 after paying $32 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).) Par Value Preferred Stock Annual Preferred Dividend Dividend Rate (%) Annual Preferred Dividend: Total Cash Dividend Paid Dividends in Paid to Common Arrears at year-end Paid to Preferred 2016 2017 2018 Total

Answer 1

	Par Value Preferred Stock	Dividend Rate	Annual Preferred Dividend
Annual Preferred Dividend:	600	6%	36
	Total Cash Dividend Paid	Paid to Preferred	Paid to Common	Dividends in Arrears at year-end
2016	32	32	0	4
2017	32	32	0	8
2018	74	44	30	0
Total	138	108	30