Ace Corporation Pays Its Cumulative Preferred Stock $1

question 66

Multiple Choice

Ace Corporation pays its cumulative preferred stock $1.95 per share. There are 40,000 shares of preferred and 80,000 shares of common. In 2016, 2017, and 2018, because of slowdowns in the economy, Ace paid no dividends. Now, in 2019, the board of directors has decided to pay out $600,000 in dividends. The common stockholders receive:

• A)$312,000
• B)$288,000
• C)$366,000
• D)$444,000
• E)None of these

---

Definitions:

Operations Management

The field of management focused on designing and overseeing the production process, as well as improving business procedures in the creation of goods or services.

Learning Rate

The rate at which learning or improvement occurs, often used in the context of cost reduction or efficiency improvement over time.

Labour Costs

The total expenditure incurred by employers for the payment of wages, benefits, and taxes associated with labor.

Learning Curve

The graphical representation of how an individual's or group's performance improves over time with experience or practice.