Mercury Corp

question 49

Multiple Choice

Mercury Corp.has 10, 000 shares of $10 par, cumulative, 6% preferred stock and 10, 000 shares of common stock outstanding since being organized at the beginning of 2010.It declared its first dividend of $40, 000 at the end of 2012.This means that

• A)all of the $40, 000 dividends available are paid to the preferred stockholders
• B)all of the $40, 000 dividends available are paid to the common stockholders
• C)an equal dollar amount is paid to each class of shareholder
• D)3 years' worth of dividends will be paid to preferred stockholders prior to paying anything to common stockholders

---

Definitions:

Decreasing Orders

A situation where the number of orders for products or services is reducing over time.

Purchase Requirements

Specifications and criteria set by buyers that must be met by suppliers for transactions to occur, including price, quality, delivery timelines, and service conditions.

Affect Value

Influence the worth or desirability of something, often referring to factors that can alter the perceived value of a product or service in the marketplace.

Purchasing Process

A series of steps undertaken by organizations to acquire goods or services from suppliers.