The Shareholders' Equity of Nick Co

question 17

Essay

The shareholders' equity of Nick Co. includes the items shown below. The board of directors of Nick declared cash dividends of $4 million, $8 million, and $50 million in each of its first 3 years of operation: 2011, 2012, 2013, 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 noncumulative and nonparticipating.

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Definitions:

Headbanging

Repetitive and deliberate striking of one's head against an object or surface, which can be a sign of distress, developmental disorders, or a form of self-injury.

Climbing Behavior

Can refer to the literal climbing activities of animals and humans or metaphorically to the behaviors used by individuals to "climb" socially or professionally.

Fear of Heights

An anxiety disorder characterized by an irrational and excessive fear of heights, known clinically as acrophobia.

Flooding

A psychological treatment method where an individual is exposed to their phobia or stressor in full intensity from the start, to help them overcome their anxiety or fear.