Betta Corp

question 8

Multiple Choice

Betta Corp.has 65,000 shares of $3 par common stock and 25,000 shares of $17 par fully participating 7% cumulative preferred stock.The company declares cash dividends of $50,000 during the current year and there are $7,000 dividends in arrears.What will be the total dividend payment to common stockholders?

• A)$13,250
• B)$20,250
• C)$36,750
• D)$50,000

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Definitions:

Benefits

Forms of compensation provided to employees or the public, including health insurance, pension, and unemployment assistance.

Opportunity Cost

The cost of what is forgone in order to pursue a certain action; the value of the best alternative option that is not selected.

Subjective Values

The notion that the value of goods and services is determined by the preferences and perceptions of individuals, rather than by intrinsic characteristics.

Decision Making

The process of selecting among available alternatives based on the preferences and values of the decision-maker.