At the End of Its First Year of Operations,Mendes Inc

question 218

Multiple Choice

At the end of its first year of operations,Mendes Inc.had 75,000 shares of preferred stock,5% cumulative,$100 par value.It also has 500,000 shares of common stock $0.01 par value.(The share information represents the numbers of shares issued and outstanding for both types of stock.) If sufficient dividends are declared,what is the per share dividend that will be paid on the preferred stock?

• A) $3,750
• B) $380,000
• C) $375,000
• D) $5,000

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Definitions:

Dialysis

Removal of the products of urine from the blood by passage of the solutes through a membrane.

Cystitis

An inflammation of the bladder, often caused by a bacterial infection, leading to symptoms such as frequent urination and pain.

Nephrotic Syndrome

Term applied to renal disease of whatever cause characterized by massive edema, proteinuria, and usually elevation of serum cholesterol and lipids.