Ultimate Sportswear has $100,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $500,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $30,000. This dividend should be distributed as follows:
A. $16,000 preferred; $14,000 common.
B. $15,000 preferred; $15,000 common.
C. $7,500 preferred; $22,500 common.
D. $8,000 preferred; $22,000 common.
E. $0 preferred; $30,000 common.
Answer: D
You might also like to view...
After the 2011 tsunami hit the coast of Japan, Tokyo Electric Power informed its employees as to the dangers and consequences of working on the nuclear power reactors and gave them the option to voluntarily agree to work on the reactors. By allowing employees to voluntarily agree to work on the reactors and not forcing them to do the work, the organization was ensuring the employees’ ______.
A. right to life and safety B. right of free consent C. right to privacy D. right of free speech
What is another key aspect of the venture concept reality check?
a. How target customers prefer to pay for your offering b. What target customers are willing to pay c. Both A and B d. None of the
When computing the total cash outflow needed to start a project, we must include ________
A) any change in net income B) any change in working capital C) any change in dividends D) any change in earnings
Banks are very hesitant to engage in fronting loans because of the low probability of repayment and thus their risk exposure up to a 100% loss
Indicate whether the statement is true or false.