A Company Issues 100,000 Shares of Preferred Stock for $40

question 59

Multiple Choice

A company issues 100,000 shares of preferred stock for $40 a share.The stock has fixed annual dividend rate of 5% and a par value of $3 per share.If sufficient dividends are declared,preferred stockholders can anticipate receiving dividends of:

• A) $5,000 each year.
• B) $15,000 each year.
• C) 5% of net income each year.
• D) $3 per share.

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Definitions:

Organizational Buying

The process by which businesses and institutions purchase products or services for use in the operations, production, or reselling.

Buying Situations

Various contexts or scenarios in which purchasing decisions are made, influenced by factors like need, urgency, availability, and personal preferences.

Straight Rebuy

A purchasing situation in business-to-business markets where a buyer reorders a product or service without seeking additional information or considering other suppliers.

Crate & Barrel

A retail company specializing in housewares, furniture, and home accessories, known for its modern and stylish product offerings.