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

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.

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Definitions:

Grievants

Individuals or parties that have filed grievances, usually in a workplace setting, claiming unfair treatment or violation of rights or agreements.

Supervisors

Individuals who oversee the work of others, ensuring tasks are completed efficiently and effectively, often holding a position between management and the workforce.

Grievances

Complaints or disputes brought forward by employees or groups of employees regarding violation of their rights, unfair treatment, or unsatisfactory working conditions.

Duty of Fair Representation

A legal principle that requires labor unions to represent all members fairly, without bias or discrimination, in grievance and negotiation processes.