Slickers,Inc.had the Following Capital Structure During 2010

question 1

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 common stockholders during 2010 assuming the preferred stock is cumulative?

• A)$3,500
• B)$7,000
• C)$22,500
• D)$14,500

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Definitions:

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