During 2017,total Dividends Declared by Jackson Corp

question 52

Multiple Choice

During 2017,total dividends declared by Jackson Corp.amounted to $29,000.There were 10,000 shares of $2 noncumulative preferred shares outstanding and 20,000 common shares outstanding.No dividends were declared in 2016.The total amount of dividends payable to each class of shares in 2017 amounted to:

• A) $10,000 to preferred, $19,000 to common
• B) $20,000 to preferred, $9,000 to common
• C) $29,000 to preferred, $0 to common
• D) $9,000 to preferred, $20,000 to common

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Definitions:

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments. Instead, they are issued at a discount to their face value, and their profit comes from the difference between the purchase price and the face value paid at maturity.

Yield to Maturity

The total return anticipated on a bond if it is held until it matures, encompassing both interest payments and the appreciation or depreciation of the original investment.

Face Value

The face value or amount in dollars indicated on a financial security, such as a bond or note, which is the total that will be paid out when it matures.

Yield to Maturity

The expected overall yield of a bond, assuming it is retained until its maturity date, comprising of both interest earnings and profits from capital appreciation.