The shareholders equity of ILP Industries includes the items shown below. The board of directors...
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Accounting
The shareholders equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $8 million, $20 million, and $150 million in its first three years of operation2024, 2025, and 2026, respectively.
Required:
1. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. (Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
2. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is noncumulative and nonparticipating. (Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
(\$ in millions) Common stock $100 Paid-in capital-excess of par, common Preferred stock, 8% 980 Paid-in capital-excess of par, preferred 555 \begin{tabular}{|l|l|l|} \hline & Preferred & Common \\ \hline 2024 & & \\ \hline 2025 & & \\ \hline 2026 & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline & Preferred & Common \\ \hline 2024 & & \\ \hline 2025 & & \\ \hline 2026 & & \\ \hline \end{tabular}
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