JKL Inc.has 10,000, $2, noncumulative preferred shares and 150,000 common shares issued.What is the total annual dividend on the preferred shares?
A)$10,000
B)$20,000
C)$150,000
D)$300,000

Question

Quizplus · Accepted Answer

The total annual dividend on the preferred shares is calculated by multiplying the number of preferred shares by the dividend per share. In this case, the dividend per share is $2, so the total annual dividend on the preferred shares is (10,000 x $2) = $20,000. Therefore, the best choice is B.

JKL IncHas 10,000, $2, Noncumulative Preferred Shares and 150,000 Common Shares