California Adventures Issues 5,000 Shares of 8%,$100 Par Value Preferred

question 10

Multiple Choice

California Adventures issues 5,000 shares of 8%,$100 par value preferred stock at the beginning of 2017.All remaining shares are common stock.The company was not able to pay dividends in 2017,but plans to pay dividends of $100,000 in 2018.Assuming the preferred stock is noncumulative,how much of the $100,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?

• A)$40,000 to preferred stockholders and $60,000 to common stockholders.
• B)$80,000 to preferred stockholders and $20,000 to common stockholders.
• C)$20,000 to preferred stockholders and $80,000 to common stockholders.

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Definitions:

Relationship-oriented

A focus or emphasis on building and maintaining strong interpersonal connections and bonds in various contexts.

Feedback

Information given to a person or system about its performance or behavior, used as a basis for improvement or adjustment.

Motivating

Providing with a reason to act in a certain way or encouraging someone to do something.

Planning

The process of making plans for something, including setting goals, defining actions to achieve the goals, and mobilizing resources to execute the actions.