Question

Wayne Enterprises declared annual cash dividends of $10 million, $12 million, and $50 Million in its first three years of operation-2017, 2018, and 2019 respectively. Wayne also had $200 million of outstanding, cumulative and nonparticipating, preferred shares that yield 10%. How much in dividends did the common stock shareholders receive in 2019

Answer 1

Answer:

the dividend to be paid to the common stock shareholder is $30 million

Explanation:

The computation of the dividend to be paid for the common stock shareholder received is shown below:

= Total dividend for the year 2019 - (Number of outsanding cumulative shares × yield percentage)

= ($50 million - $200 million × 10%)

= $50 million - $20 million

= $30 million

hence, the dividend to be paid to the common stock shareholder is $30 million