Since Its Organization in January of 2016, Mars Corp

question 11

Multiple Choice

Since its organization in January of 2016, Mars Corp. began with the issuance of 15,000 shares of $5 par, cumulative, 8% preferred stock and 15,000 shares of common stock shares, which are still outstanding. It declared its first dividend of $40,000 at the end of 2018. This means that

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

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Definitions:

Oxygen

A chemical element with symbol O and atomic number 8, essential for respiration of living organisms and combustion processes.

Compound

A compound is a substance made up of two or more different elements chemically bonded together in a fixed ratio.

Ag+

A silver ion, typically carrying a single positive charge, often used in silver compounds or in photography.

Chlorine

A highly reactive halogen element used in water purification, disinfectants, and in the production of chlorinated compounds.