Question Details

What is the annual dividend on the preferred stock



	1.	Solaris, Inc. has 2,000 shares of 5%, $10 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?
a.	$5 per share
b.	$1,000 in total
c.	$10,000 in total
d.	$.05 per share


2.	Peabody, Inc. has 5,000 shares of 7%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. If the board of directors declares a $30,000 dividend, the
a.	preferred shareholders will receive 1/10th of what the common shareholders will receive.
b.	preferred shareholders will receive the entire $30,000.
c.	$30,000 will be held as restricted retained earnings and paid out at some future date.
d.	preferred shareholders will receive $15,000 and the common shareholders will receive $15,000.


	3.	Rendezvous, Inc. has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $110,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014?
a.	$0
b.	$50,000
c.	$110,000
d.	$60,000


	4.	Burnell, Inc. has 5,000 shares of 4%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2012. The board of directors declared and paid a $8,000 dividend in 2013. In 2014, $30,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2014?
	Preferred	Common
a.	$18,000	$12,000
b.	$15,000	$15,000
c.	$12,000	$18,000
d.	$10,000	$20,000


	5.	Bodkin, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014, and December 31, 2015. The board of directors declared and paid a $25,000 dividend in 2014. In 2015, $55,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2015?
	Preferred	Common
a.	$0	$55,000
b.	$25,000	$30,000
c.	$27,500	$27,500
d.	$35,000	$20,000




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