Slickers, Inc

question 69

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 common stockholders during 2014 assuming the preferred stock is noncumulative?

• A) $3,500.
• B) $7,000.
• C)$21,500.
• D)$14,500.

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Definitions:

Liquidation

The process of converting a company's assets into cash to pay off creditors before dissolving the business.

Takeover

The acquisition of control over a company by another company or investor group, typically through the purchase of its shares.

Natural Food

Food that is considered to be produced without artificial processes, additives, or preservatives.

Organic Produce

Fruits, vegetables, and other food products grown without the use of synthetic pesticides, fertilizers, or genetically modified organisms.