The Shareholders' Equity of Crystal Company Includes the Items Shown

question 108

Essay

The shareholders' equity of Crystal Company includes the items shown below. The board of directors of Crystal declared cash dividends of $3 million, $6 million, and $50 million in each of its first three years of operation: 2016, 2017, and 2018, respectively.
Common stock, $1 par, 50,000,000 shares outstanding
Preferred stock, 6%, $100 par, 1,000,000 shares outstanding
Required:
Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is cumulative and nonparticipating.

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Definitions:

Amniotic Sac

A fluid-filled sac that surrounds and protects the embryo or fetus in the uterus.

Double Helix

The structure formed by double-stranded molecules of nucleic acids such as DNA, characterized by a twisted ladder-like appearance.

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The period during which a fetus develops inside a woman's uterus, typically lasting around 40 weeks from the last menstrual period to birth.