Alto Company Issued 7% Preferred Stock with a $100 Par

question 187

Multiple Choice

Alto Company issued 7% preferred stock with a $100 par value. This means that:

• A) The market price per share will approximate $100 per share.
• B) The amount of the potential dividend is $7 per year per preferred share.
• C) Preferred shareholders are entitled to 7% of the annual income.
• D) Preferred shareholders have a guaranteed dividend.
• E) Only 7% of the total paid-in capital can be preferred stock.

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The deliberate act of destroying or obstructing something, usually for political or strategic gain.

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