Kuhns Corp

question 75

Multiple Choice

Kuhns Corp.has 200,000 shares of preferred stock outstanding that is cumulative.The dividend is $6.50 per share and has not been paid for 3 years.If Kuhns retained earnings and after tax income this year total $3 million,what could be the maximum payment to the preferred shareholders on a per share basis?

• A) $19.50 per share
• B) $15.00 per share
• C) $13.00 per share
• D) $6.50 per share

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