Dividends in arrears on cumulative preferred stock
a. never have to be paid, even if common dividends are paid.
b. should be recorded as a current liability until they are paid.
c. enable the preferred stockholders to share equally in corporate earnings with the common stockholders.
d. will be paid only after common dividends have been paid.
e. must be paid before common stockholders can receive a dividend.

Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)