The Surf's Up Issues 1,000 Shares of 6%,$100 Par Value

question 115

Multiple Choice

The Surf's Up issues 1,000 shares of 6%,$100 par value preferred stock at the beginning of 2011.All remaining shares are common stock.The company was not able to pay dividends in 2011,but plans to pay dividends of $18,000 in 2012.Assuming the preferred stock is cumulative,how much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2012?

• A)$6,000 to preferred stockholders and $12,000 to common stockholders.
• B)$18,000 to preferred stockholders and $0 to common stockholders.
• C)$12,000 to preferred stockholders and $6,000 to common stockholders.
• D)$9,000 to preferred stockholders and $9,000 to common stockholders.

---

Definitions:

Self-Management

The ability of an individual to manage their own actions, emotions, and thoughts, aiming towards achieving personal goals and maintaining well-being.

Participation Rate

The proportion of eligible individuals who actually participate in a study, program, or activity, often used as an indicator of the level of engagement or interest.

Treatment Effectiveness

The degree to which a particular treatment or intervention achieves its intended outcome under usual or everyday conditions.

Clinical Disorders

Conditions characterized by significant disturbances in thoughts, feelings, or behaviors, often warranting medical diagnosis and treatment.