Winston Corporation Has Retained Earnings of $400,000

question 88

Multiple Choice

Winston Corporation has retained earnings of $400,000.It has 5,000 shares of 6 percent,$200 par value preferred stock outstanding that is callable at 102.The preferred stock is cumulative,and one year of dividends is in arrears.It also has 10,000 shares of $100 par value common stock outstanding.Assume all stock is issued at par.The book value of each share of preferred stock is

• A) $210.
• B) $216.
• C) $204.
• D) $220.

---

Definitions:

Free Blacks

African Americans who were not enslaved, living primarily in the North before the Civil War and in various parts of the country after abolition.

Thomas Jefferson

An American Founding Father, the principal author of the Declaration of Independence (1776), and the third President of the United States (1801–1809) known for his promotion of the ideals of republicanism in the United States.

Annuity System

System of yearly payments to Native American tribes by which the federal government justified and institutionalized its interference in Indian tribal affairs.