Pearland Company Has 2 000 Shares of Preference Shares Outstanding

question 34

Multiple Choice

Pearland Company has 2 000 shares of preference shares outstanding. The preference shares have a value of $100, a 5% dividend rate, and are non- cumulative. If Pearland has sufficient funds to pay dividends, what is the total amount of dividends that will be paid out to preference shareholders?

• A)$20 000
• B)$10 000
• C)$2 000
• D)$5 000

---

Definitions:

New Career

The beginning or pursuit of a different job path, typically involving a significant change in one's professional life.

Increased Income

A rise in the amount of money earned or received, which can impact an individual's or household's economic status and quality of life.

Women in the Middle

Typically refers to women who are simultaneously managing roles as caregivers for both their children and aging parents.

Social Security

A government program that provides monetary assistance to people with inadequate or no income.