Pearland Company Has 5,000 Shares of Preferred Stock Outstanding

question 45

Multiple Choice

Pearland Company has 5,000 shares of preferred stock outstanding. The preferred stock has a $90 par value, a 5% dividend rate, and is noncumulative. If Pearland has sufficient funds to pay dividends, what is the total amount of dividends that will be paid out to preferred shareholders?

• A)$10,800
• B)$22,500
• C)$9,000
• D)$4,500

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