A Company Issued 8% Preferred Stock with a $100 Par

question 25

Multiple Choice

A company issued 8% preferred stock with a $100 par value.This means:

• A)Preferred stockholders are entitled to 8% of the annual net income.
• B)Only 8% of total contributed capital can be preferred stock.
• C)Preferred stockholders are guaranteed a dividend.
• D)The potential dividend to preferred stockholders is $8 per share per year.

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