Halverstein Company's Outstanding Stock Consists of 7,000 Shares of Cumulative $\begin{array}{lc}&\text { Dividend Declared }\\\text { Year 1 } & \$ 0 \\\text { Year 2 } & \$ 6,000 \\\text { Year 3 } & \$ 32,000\end{array}$

question 103

Multiple Choice

Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. $\begin{array}{lc}&\text { Dividend Declared }\\\text { Year 1 } & \$ 0 \\\text { Year 2 } & \$ 6,000 \\\text { Year 3 } & \$ 32,000\end{array}$
The amount of dividends paid to preferred and common shareholders in Year 2 is:

• A) $3,000 preferred; $3,000 common.
• B) $3,500 preferred; $2,500 common.
• C) $0 preferred; $6,000 common.
• D) $4,200 preferred; $1,800 common.
• E) $6,000 preferred; $0 common.

---

Definitions:

Ethical Decision-Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Ethical Codes

Ethical codes are a set of guidelines and principles designed to guide the behavior and decision-making of professionals within a specific field.

Moral Model

This refers to a conceptual framework that emphasizes ethical and moral principles as the basis for determining right and wrong behavior.

Job Performance

The effectiveness and efficiency with which an individual fulfills their work-related tasks and responsibilities.