A Company Issued 7% Preferred Stock with a $100 Par

question 148

Multiple Choice

A company issued 7% preferred stock with a $100 par value.This means that:

• A)Preferred shareholders have a guaranteed dividend.
• B)The amount of the potential dividend is $7 per year per preferred share.
• C)Preferred shareholders are entitled to 7% of the annual income.
• D)The market price per share will approximate $100 per share.
• E)Only 7% of the total contributed capital can be preferred stock.

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Definitions:

Atoms

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, and electrons orbiting the nucleus.

Proteobacteria

Largest bacterial lineage; members show a wide range of metabolic diversity.

Cyanobacteria

Photosynthetic, oxygen-producing bacteria.

Spirochetes

Group of small bacteria shaped like a stretched-out spring.