Final answer:
In 2024, after accounting for the unpaid accumulated dividends and the current year's 6% dividends on the cumulative preferred stock, common shareholders of MLS Enterprises will receive $18 million in dividends.
Step-by-step explanation:
To determine the amount of dividends common shareholders will receive in 2024, we need to understand how cumulative preferred stock dividends work. The 6% cumulative preferred stock means that preferred shareholders are entitled to receive 6% of the $400 million preferred stock value in dividends each year before any dividends are paid to common shareholders. This amounts to $24 million annually ($400 million * 6%). Since the company did not pay this full amount in 2022 and 2023, only paying $20 million each year, there is an accumulated preferred dividend of $8 million ($4 million for each year that needs to be paid before common shareholders can receive dividends).
The total dividends declared in 2024 are $50 million. The accumulated preferred dividends of $8 million plus the current year's preferred dividends of $24 million total $32 million, which must be paid to preferred shareholders. After paying $32 million to preferred shareholders, the remaining amount for common shareholders is $18 million ($50 million - $32 million).