A Corporation Has 1,000 Shares of 10 Percent,$50 Par-Value Preferred

Question 52
Multiple Choice

A corporation has 1,000 shares of 10 percent,$50 par-value preferred stock and 10,000 shares of $5 par-value common stock outstanding.If the board of the directors decides to distribute dividends totaling $40,000,the common stockholders will receive a dividend of A) $5.00 a share. B) $4.00 a share. C) $3.50 a share. D) $3.75 a share.