The Following Information Is Provided for Slickers,Inc

question 18

Multiple Choice

The following information is provided for Slickers,Inc.for year 2019: • Preferred stock,7%,$50 par value,1,000 shares issued and outstanding
• Common stock,$100 par value,2,000 shares issued and outstanding
• Dividends in arrears for 2017 and 2018
• Total dividends declared and paid during 2019 totaled $25,000
-
How much of the dividend was paid to the preferred stockholders during 2019 assuming the preferred stock is noncumulative?

• A)$3,500.
• B)$7,000.
• C)$10,500.
• D)$14,500.

---

Definitions:

Corporate Fundamentals

The basic elements that underline a company's financial health and operations, including its revenue, profits, and assets.

Production Function

An equation that describes the maximum output that can be produced with a given set of inputs.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts or funds obtained from special financing sources.

Labor

The utilization of human physical and intellectual capacities in the generation of goods and services.