A Share of 5% Preferred Stock Has a Par Value

question 10

Multiple Choice

A share of 5% preferred stock has a par value of $30 and market value of $100.The owners of the preferred stock will receive a cash dividend of: (Round your answer to the nearest cent. )

• A)$1.50 per share.
• B)$70 per share.
• C)$5.00 per share.
• D)$30.00 per share.

Grasp the flow of cash into and out of the company and its representation in financial statements.

Understand the principles of accounting and the equation.

Identify different business types and their characteristics.

Determine the concepts associated with the ratio of liabilities to stockholders' equity.

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Definitions:

External User

Individuals or entities not directly involved in the management or operations of a company, who use its financial statements.

Accounting Data

Information related to financial transactions and status used for analysis, reporting, and decision making in business.

Economic Event

An action that has the potential to impact the financial position of a company, such as a sale, purchase, or investment.

Transaction

An economic event that involves the exchange of goods, services, or funds between two parties.