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Kuhns Corp

Question 21
Multiple Choice

Kuhns Corp. has 200,000 shares of preferred stock outstanding that is cumulative. The dividend is $6.50 per share and has not been paid for 3 years. If Kuhns retained earnings and after tax income this year total $3 million, what could be the maximum payment to the preferred shareholders on a per share basis? A) $19.50 per share B) $15.00 per share C) $13.00 per share D) $6.50 per share

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