Slickers, Inc

question 21

Multiple Choice

Slickers, Inc. had the following capital structure during 2014: Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2012 and 2013.
Common stock, $100 par value, 2,000 shares issued and outstanding.
The total dividends declared and paid during 2014 totaled $25,000. How much of the dividend is paid to the preferred stockholders during 2014 assuming the preferred stock is cumulative?

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

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Definitions:

Competitive Strategy

A plan to achieve a competitive advantage in the market, often by distinguishing one's products or services from those of competitors.

Industries and Markets

Sectors of the economy and the competitive environments in which businesses operate.

Restructuring Strategy

A corporate management term referring to the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

Retrenchment

A corporate strategy that involves reducing the size or scope of a company's operations, often through layoffs or the sale of assets, as a way to become more financially stable.