Slickers,Inc.had the Following Capital Structure During 2010

question 10

Multiple Choice

Slickers,Inc.had the following capital structure during 2010:
Preferred stock,7%,$50 par value,1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009.
Common stock,$100 par value,2,000 shares issued and outstanding.
The total dividends declared and paid during 2010 totaled $25,000.How much of the dividend is paid to the preferred stockholders during 2010 assuming the preferred stock is noncumulative?

• A)$3,500
• B)$7,000
• C)$10,500
• D)$14,500

Grasp the concepts of capital structure and how financing decisions impact company risk.

Recognize the importance of efficiency in utilizing assets to generate revenue.

Understand the calculation and implications of working capital.

Identify the various stakeholders and their interests in financial statement analysis.