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:

Expectation

A belief about what will happen in the future, often based on experience or hypothetical scenarios.

Levels

Different stages or degrees of magnitude, intensity, or depth in a hierarchy or process.

Response

An action or change in behavior that occurs as a result of a stimulus or situation.

Stress

A response of the body to demands or threats, characterized by physical, emotional, and mental reactions that can affect overall wellbeing.