A Company Issues 100,000 Shares of Preferred Shares for $40

question 9

Multiple Choice

A company issues 100,000 shares of preferred shares for $40 a share.The stock has a fixed annual dividend rate of $0.15 per share.Preferred shareholders can anticipate receiving a dividend of:

• A)$200,000 each year.
• B)$15,000 each year.
• C)5% of net income each year.
• D)5% of the market value of the stock at the time the dividend is declared.

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Definitions:

Memory Processes

The procedures involved in encoding, storing, and retrieving information in the brain.

Classical Conditioning

A method of instruction that involves the repeated combination of two stimuli, resulting in a behavior that, while initially induced by the second stimulus, is eventually induced by the first stimulus alone.

Punishment

A consequence applied to an individual or animal in response to an undesirable behavior, with the intent of decreasing or eliminating that behavior.

Instinctive Drift

Tendency for an animal’s behavior to revert to genetically controlled patterns.