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Calculating Dividends

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

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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