Helen Owns 12

question 83

Multiple Choice

Helen owns 12.5% of the stock of the Median Corporation.If Median makes a dividend payment of $25,000,000 paid proportionally to its shareholders,how much of this amount would Helen receive,disregarding tax?

• A)$2,000,000
• B)$3,125,000
• C)$4,150,000
• D)$12,500,000

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Definitions:

Trading Securities

Financial instruments such as shares, bonds, or other securities that are purchased with the intention of selling them in the short term to profit from price fluctuations.

Debt Securities

Financial instruments representing money borrowed that must be repaid, such as bonds, bills, or notes.

Available-for-Sale Securities

Financial assets that a company intends to sell within a short period but can hold onto for an indefinite period, classified as neither held for trading nor held to maturity.

Realizable Securities

Financial assets that can be quickly converted into cash with a known market price.