Use the Following Information for Questions 74-76

question 21

Multiple Choice

Use the following information for questions 74-76.
Instanbul Corp. has outstanding 20,000 no par value, $ 0.80, preferred shares and 100,000 no par value common shares. Dividends have been paid every year except last year and the current year. The carrying value of the preferred shares is $ 200,000 and of the common shares is $ 300,000.
-If the preferred shares are noncumulative and fully participating and $ 70,000 is distributed as a dividend, the common shareholders will receive

• A) $ 0.
• B) $ 42,000.
• C) $ 46,000.
• D) $ 54,000.

Understand barriers to effective problem-solving and decision-making in a group context.

Understand the importance of objective analysis in group decision-making.

Gain knowledge on various approaches to decision making within task groups, including the advantages and disadvantages of each.

Recognize the concept and consequences of groupthink in decision-making processes.

---

Definitions:

Ceteris Paribus

A Latin term meaning "all other things being equal," used in economics to describe a situation where all variables except those under immediate consideration are held constant.

Perfectly Competitive Industry

An economic model where many firms sell identical products, entry and exit are easy, and no single firm can influence the market price.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

ATC

Average Total Cost, the total cost per unit of output when all fixed and variable costs are considered.