Denson, Inc

question 98

Multiple Choice

Denson, Inc. has 10,000 shares of 7%, $100 par value, non-cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $120,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014?

• A) $0.
• B) $70,000.
• C) $120,000.
• D) $50,000.

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Definitions:

Stackelberg Model

An economic model of strategic interaction in oligopolistic markets where one firm (the leader) sets its output first and then other firms (followers) set their outputs sequentially.

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State Trial Court

The court of first instance in the state judicial system, where civil and criminal cases are initially tried.

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