ABC Corporation Declares a $2 Million Dividend

question 9

Multiple Choice

ABC corporation declares a $2 million dividend. It had issued 1 million shares of common stock and 500 thousand shares of preferred stock. If preferred shares have a par value of $50 and a preferred dividend of 4 percent, what is the preferred dividend?

• A) $1,250,000
• B) $2,000,000
• C) $1,000,000
• D) $200,000

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Definitions:

Bloodstream

The circulating fluid system within the body, comprised mainly of blood, that delivers nutrients and oxygen to the cells and carries away waste products.

Antibodies

Proteins produced by the immune system to identify and neutralize foreign objects like bacteria and viruses.

Protein Molecules

Large, complex molecules that play many critical roles in the body, including in the structure, function, and regulation of tissues and organs.

Antigens

Substances that the body recognizes as foreign and that can provoke an immune response.