Types of Dividends: Distressed Capital, Inc

question 67

Multiple Choice

Types of dividends: Distressed Capital, Inc., is being liquidated. The company's assets can be sold for $20 million. It will cost $18 million for the company to meet all its previous obligations and to payoff debt holders. The company has 30 million shares outstanding. If you own 2,000 shares, how much do you expect to receive in liquidating dividends? Ignore taxes.

• A) $0.00
• B) $133.33
• C) $266.66
• D) $1,200.00

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Definitions:

Reasonable Options

Choices or alternatives that are sensible and based on good judgment.

Preconceptions

Pre-existing opinions or beliefs that shape one's understanding or interpretation of new information.

Dominance Structuring

The organization of a social group based on a hierarchy of power or dominance, where individuals or groups assert control over others.

To-Be-Chosen Option

An alternative or possibility that is under consideration for selection in decision-making.