SoyCom Corporation Has 100 Shares of $100,7% Cumulative Nonparticipating Preferred

question 88

Multiple Choice

Soy.com Corporation has 100 shares of $100,7% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock outstanding.The company paid $4,000 cash dividends including one-year dividends in arrears to preferred stockholders.Preferred stockholders received:

• A)$1,200.
• B)$2,000.
• C)$3,300.
• D)$1,400.

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Definitions:

Intermediate Scrutiny

A standard of review under which a law must be necessary to achieve a substantial, or important, government interest and must be narrowly tailored to that interest.

Gender-based Classification

the categorization or differentiation of individuals based on their gender, which can raise legal issues particularly when it leads to discrimination.

Rational Basis

A standard of judicial review that requires a law to have a reasonable connection to a legitimate government objective to be upheld as constitutional.

Checks and Balances

Checks and balances is a system in which the different branches of government have powers that can influence and limit the powers of the other branches to prevent any single branch from becoming too powerful.