A Company Has 2,000 Shares of $100 Par,6%,noncumulative Preferred Stock

question 41

Multiple Choice

A company has 2,000 shares of $100 par,6%,noncumulative preferred stock outstanding.If the board of directors declares a dividend this year,how much will the preferred shareholders receive?

• A)$100 per share
• B)$6 per share
• C)$200,000 in total
• D)$60 per share

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Definitions:

Quantity

The amount or number of a material or immaterial good or service.

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Supply Analysis

The examination of factors that influence the quantity of a product or service that the market can offer at various prices.

Equilibrium Price

The cost point where the amount of a product sought by buyers matches the amount made available by sellers, leading to a state of equilibrium in the market.