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Calculating Dividends

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The shareholders' equity of Kramer Industries includes the data shown below. During 2012, cash dividends of $150 million where declared. Dividends were not declared in 2010 or 2011.

$ in millions
Common Stock $200
Paid-in capital excess of par, common 800
Preferred stock, 10%, nonparticipating 100
Paid-in-capital excess of par, preferred 270

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.

Assumption A - The preferred stock is noncumulative
Assumption B - The preferred stock is cumulative

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The shareholders' equity of Kramer Industries includes the data shown below. During 2012, cash dividends of $150 million where declared. Dividends were not declared in 2010 or 2011

$ in millions
Common ...

Solution Summary

See attached for the proper table.

The shareholders' equity of Kramer Industries includes the data shown below. During 2012, cash dividends of $150 million where declared. Dividends were not declared in 2010 or 2011.

$ in millions
Common Stock $200
Paid-in capital excess of par, common 800
Preferred stock, 10%, nonparticipating 100
Paid-in-capital excess of par, preferred 270

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.

Assumption A - The preferred stock is noncumulative
Assumption B - The preferred stock is cumulative

$2.19
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Wings Inc., a software development firm, has stock outstanding as follows: 25,000 shares of cumulative 1%, preferred stock of $40 par, and 50,000 shares of $120 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $7,500; second year, $10,500; third year, $25,000; fourth year, $60,000.

Calculate the dividends per share on each class of stock for each of the four years. Round all answers to the nearest whole cent. If no dividends are paid in a given year, enter "0".

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