Pete's Outstanding Stock Consists of (A)17,000 Shares of Noncumulative 7 $$\begin{array} { c c } 2010 & \$ 0 \\2011 & 28,000 \\2012 & 100,000 \\2013 & 198,000\end{array}$$

question 198

Multiple Choice

Pete's outstanding stock consists of (a) 17,000 shares of noncumulative 7.50% preferred stock with a $10 par value and (b) 42,500 shares of common stock with a $1 par value.During its first four years of operation,the corporation declared and paid the following total cash dividends.
$$\begin{array} { c c } 2010 & \$ 0 \\2011 & 28,000 \\2012 & 100,000 \\2013 & 198,000\end{array}$$
What is the amount of dividends that the Common Stockholders receive in 2011?

• A)$26,725
• B)$15,250
• C)$2,500
• D)$0
• E)$28,000

---

Definitions:

Tortilla Chips

Crispy snack food made from corn tortillas cut into triangles and then fried or baked.

Fungus

A group of eukaryotic organisms, which include yeasts, molds, and mushrooms, that live by decomposing and absorbing the organic material in which they grow.

Input Costs

The expenses incurred to purchase the raw materials, labor, and other resources needed to produce goods or services.

Hair Replacement

A set of medical or cosmetic techniques aimed at restoring hair to balding or thinning areas of the scalp.