A Company Has Outstanding 9 Million Shares of $2 Par

question 86

Multiple Choice

A company has outstanding 9 million shares of $2 par value common stock and 1 million shares of $4 par value preferred stock.The preferred stock has an 8% dividend rate.The company declares $600,000 in total dividends for the year.Which of the following is correct if dividends in arrears are $30,000?

• A) Preferred stockholders will receive $350,000; common stockholders will receive $250,000.
• B) Preferred stockholders will receive $60,000; common stockholders will receive $540,000.
• C) Preferred stockholders will receive $320,000; common stockholders will receive $280,000.
• D) Preferred stockholders will receive $90,000; common stockholders will receive $510,000.

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Definitions:

Retaliated

To respond to an action or injury with an equivalent or greater action, often in the context of revenge or defense.

Female Dominated Professions

Occupations or sectors where women significantly outnumber men, often with implications on gender roles, wage disparities, and workplace dynamics.

Family and Medical Leave Act

A U.S. federal law that provides employees with unpaid leave for family and medical reasons, with the assurance of job protection.

Paid Leave

A policy allowing employees to take time off from work while still receiving compensation.