Druffle Industries Has 5,000 Shares of $100 Par, 7% Noncumulative

question 21

Multiple Choice

Druffle Industries has 5,000 shares of $100 par, 7% noncumulative, nonparticipating preferred stock issued and outstanding. In 2016, the board of directors declared cash dividends of $75,000. The amount of dividends to be distributed to preferred shareholders is:

• A)$350.
• B)$35,000.
• C)$40,000.
• D)$75,000.
• E)$110,000.

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Definitions:

Operant Conditioning

A learning principle where behaviors are modified by the consequences that follow them, with rewards increasing desired actions and punishments reducing their occurrence.

Predictability

The ability to accurately forecast future events or behaviors based on patterns or prior knowledge.

Rescorla And Wagner

Psychologists who developed a model explaining how the strength of a stimulus-response association is determined in classical conditioning.

Instinctive Drift

The tendency of learned behavior to gradually revert to biologically predisposed patterns.