What Is the EMV for Option 2 in the Following

question 92

Multiple Choice

What is the EMV for Option 2 in the following decision table?

• A) 10,000
• B) 16,000
• C) 20,000
• D) 24,000
• E) 30,000

---

Definitions:

Cumulative Preferred Stock

A type of preferred stock where dividends accrue if not paid as scheduled, ensuring holders receive dividends in arrears before common stockholders get any.

Convertible Preferred Stock

A type of preferred stock that offers the option to convert into a specified number of common shares, usually after a predetermined date.

APB Opinion No.14

An accounting guideline issued by the Accounting Principles Board addressing the accounting for convertible securities and the exercise of conversion options in financial statements.

Conversion Provision

A clause in a security or loan that allows the holder to convert into a different security, typically common stock, under certain conditions.