Wilson, Inc

question 6

Multiple Choice

Wilson, Inc. has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 75,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock?

• A) $5,000
• B) $25,000
• C) $100,000
• D) $0. Preferred stockholders do not receive dividends.