Premier's Outstanding Stock Consists of (A) 57,000 Shares of Cumulative $\begin{array}{cc}2010 & \$ 0 \\2011 & 38,000 \\2012 & 150,000 \\2013 & 175,000\end{array}$

question 82

Multiple Choice

Premier's outstanding stock consists of (a) 57,000 shares of cumulative 4.25% preferred stock with a $18 par value and (b) 75,000 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.
$\begin{array}{cc}2010 & \$ 0 \\2011 & 38,000 \\2012 & 150,000 \\2013 & 175,000\end{array}$
What is the amount of dividends that the Common Stockholders receive for all years presented?

• A) $177,000
• B) $188,580
• C) $214,250
• D) $326,000
• E) $363,000

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Definitions:

Share Options

Financial instruments that give the holder the right, but not the obligation, to buy or sell shares of a stock at a set price within a specific period.

Incentive Compensation

A form of remuneration designed to reward employees for achieving certain performance targets or objectives.

Share Market

A venue where stocks, bonds, and other securities are bought and sold between investors.

Employee Share Ownership

Programs that allow employees to own shares or a stake in the company they work for, aiming to align interests and boost motivation.