Assume the Following Capital Structure

question 5

Multiple Choice

Assume the following capital structure:
Preferred stock,6%,$50 par value,1,000 shares issued and outstanding with dividends in arrears for three prior years (2007 - 2009) .
Common stock,$100 par value,2,000 shares issued and outstanding.
Total dividends declared and paid in 2010 were $50,000.How much of the 2010 dividend will be paid to the preferred stockholders assuming the preferred stock is noncumulative?

• A)$12,000
• B)$3,000
• C)$47,000
• D)$38,000

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Definitions:

Development

Process of regulated growth and differentiation of cells and tissues.

Morphogenesis

Emergence of shape in tissues, organs, or the entire embryo during development.

Body Shape

The physical form or structure of a person's body, often described in terms of proportion, distribution of muscle and fat, and skeletal structure.

Gastrulation

A phase early in the embryonic development of most animals, during which the single-layered blastula is reorganized into a multilayered structure known as the gastrula.