Sabas Company Has 20,000 Shares of $100 Par, 2% Cumulative

question 53

Multiple Choice

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the second year.

• A) $2.25 and $0.00
• B) $2.25 and $0.45
• C) $0.00 and $0.45
• D) $2.00 and $0.45

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Definitions:

Ear-marking

Allocating specific funds for a particular purpose or project, often used in governmental budgeting practices.

Appropriation

The act of setting aside funds by a legislative body for specific governmental purposes.

Collaborations

Joint efforts or partnerships between individuals, organizations, or entities to achieve common goals.

Pool Funds

Financial resources combined from multiple sources or agencies to maximize efficiency, effectiveness, and flexibility in funding programs or projects.