Pearland Company Has 2,000 Shares of Preferred Stock Outstanding

question 101

Multiple Choice

Pearland Company has 2,000 shares of preferred stock outstanding. The preferred stock has a $100 par value, a 5% dividend rate, and is non-cumulative. If Pearland has sufficient funds to pay dividends, what is the total amount of dividends that will be paid out to preferred shareholders?

• A) $10,000
• B) $2,000
• C) $1,000
• D) $5,000

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