The shareholders’ equity of ILP Industries includes the items
shown below. The board of directors of ILP declared cash dividends
of $6 million, $16 million, and $190 million in its first three
years of operation—2021, 2022, and 2023, respectively.
|($ in millions)|
|Paid-in capital—excess of par, common||960|
|Preferred stock, 5%||280|
|Paid-in capital—excess of par, preferred||680|
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. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
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