Wok N Roll,Inc

question 156

Multiple Choice

Wok N Roll,Inc.began on January 1,2014 by issuing 100,000 shares of $1 par value common stock and 1,000 shares of $100 par value,5%,cumulative preferred stock.No dividends were declared in 2014 or 2015.In 2016,Wok N Roll declared and paid a $0.50 dividend to its common stockholders.Assuming all shares originally issued are outstanding,the total dividend declared and paid in 2016 equals:

• A) $65,000.
• B) $50,500.
• C) $50,000.
• D) $55, 000.

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Definitions:

Present Exchange Rate

The current rate at which one currency can be exchanged for another in the foreign exchange market.

U.K. Bills

Short-term debt instruments issued by the United Kingdom government to finance its operations.

Risk-Free Rate

A concept describing the return investors expect to earn from an absolutely risk-free investment over a certain period of time, typically associated with government bonds.

Forward Rate

A term in finance that refers to the future interest rate agreed upon in a forward contract, or the rate used to discount a future financial transaction.