The shareholders’ equity of Kramer Industries includes the data shown below. Dur

The shareholders’ equity of Kramer Industries includes the data shown below. During 2012, cash dividends of $210 million were declared. Dividends were not declared in 2010 or 2011. ($ in millions) ——————————————————————————–Required: Determine the amount of dividends payable to preferred shareholders and to common shareholders under each of the following two assumptions regarding the characteristics of the preferred stock.Assumption A — The preferred stock is noncumulative. Assumption B — The preferred stock is cumulative.