If 1,000 Shares with a Par Value of $50/share,a Dividend

question 55

Multiple Choice

If 1,000 shares with a par value of $50/share,a dividend rate of 10% and redeemable for $80/share,are sold for $75/share how much dividend will the equity holders be entitled to?

• A)$3,000
• B)$5,000
• C)$7,500
• D)$8,000

---

Definitions:

Assets and Liabilities

Assets are economic resources controlled by a business, while liabilities are financial obligations owed to others.

Intragroup Merchandising Transactions

Transactions for the sale and purchase of goods and services that occur between entities within the same group of companies.

Consolidation Process

The method by which a parent company combines its financial statements with those of its subsidiaries to produce a single set of financial statements representing the entire corporate group as one entity.