Question : 123.Most preferred stocks callable preferred stocks, which means that the : 1244164

123.Most preferred stocks are callable preferred stocks, which means that the callable feature may be exercised by

 

a.

either the issuing corporation or a preferred stockholder.

b.

the state that issued the corporation’s charter.

c.

the issuing corporation.

d.

a preferred stockholder.

 

 

 

124.Dividends in arrears are dividends on

 

a.

noncumulative preferred stock that have not been declared for some specified period of time.

b.

cumulative preferred stock that have not been declared for some specified period of time.

c.

common stock that may never be declared.

d.

cumulative preferred stock that have been declared but not yet paid.

 

 

 

125.Honig Corporation had the following shares of stock outstanding on December 31, 20×8:

 

Common stock, $50 par value, 100,000 shares outstanding

Preferred stock, 8 percent, $100 par value, cumulative, 10,000 shares outstanding

Dividends were in arrears for 20×6 and 20×7. On December 31, 20×8, total cash dividends of $400,000 were declared. The total amounts payable to preferred stockholders and common stockholders, respectively, are

 

a.

$160,000 and $240,000.

b.

$80,000 and $320,000.

c.

$200,000 and $200,000.

d.

$240,000 and $160,000.

 

 

 

126.Gault Corporation had the following shares of stock outstanding on December 31, 20×8:

 

Common stock, $50 par value, 200,000 shares outstanding

Preferred stock, 8 percent, $100 par value, cumulative, 20,000 shares outstanding

Dividends were in arrears for 20×6 and 20×7. On December 31, 20×8, total cash dividends of $800,000 were declared. The total amounts payable to preferred stockholders and common stockholders, respectively, are

 

a.

$480,000 and $320,000.

b.

$160,000 and $640,000.

c.

$320,000 and $480,000.

d.

$400,000 and $400,000.

 

 

 

127.Beckham Corporation has 3,000 shares of $100 par value, 7 percent cumulative preferred stock, and 10,000 shares of $10 par value common stock outstanding during its first five years of operation. Beckham Corporation paid cash dividends as follows: 20×4, $7,000; 20×5, $0; 20×6, $65,000; 20×7, $30,000; 20×8, $15,000. The amount of dividends the common stockholders received during 20×4 was

 

a.

$0.

b.

$3,500.

c.

$10,500.

d.

$7,000.

 

 

 

128.Beckham Corporation has 3,000 shares of $100 par value, 7 percent cumulative preferred stock, and 10,000 shares of $10 par value common stock outstanding during its first five years of operation. Beckham Corporation paid cash dividends as follows: 20×4, $18,000; 20×5, $0; 20×6, $65,000; 20×7, $30,000; 20×8, $15,000. The amount of dividends in arrears at the end of 20×5 was

 

a.

$3,000.

b.

$24,000.

c.

$0.

d.

$10,000.

 

 

 

129.Beckham Corporation has 3,000 shares of $100 par value, 7 percent cumulative preferred stock, and 10,000 shares of $10 par value common stock outstanding during its first five years of operation. Beckham Corporation paid cash dividends as follows: 20×4, $8,500; 20×5, $0; 20×6, $65,000; 20×7, $30,000; 20×8, $15,000. The amount of dividends received by the preferred stockholders during 20×6 was

 

a.

$26,500.

b.

$54,500.

c.

$33,500.

d.

$65,000.

 

 

 

130.Beckham Corporation has 3,000 shares of $100 par value, 7 percent cumulative preferred stock, and 10,000 shares of $10 par value common stock outstanding during its first five years of operation. Beckham Corporation paid cash dividends as follows: 20×4, $43,500; 20×5, $0; 20×6, $65,000; 20×7, $30,000; 20×8, $15,000. The amount of dividends received by the common stockholders during 20×4 was

 

a.

$22,500.

b.

$28,500.

c.

$24,500.

d.

$26,500.

 

 

 

131.Beckham Corporation has 3,000 shares of $100 par value, 7 percent cumulative preferred stock, and 10,000 shares of $10 par value common stock outstanding during its first five years of operation. Beckham Corporation paid cash dividends as follows: 20×4, $14,000; 20×5, $44,000; 20×6, $65,000; 20×7, $30,000; 20×8, $15,000. The amount of dividends received by the preferred stockholders during 20×5 was

 

a.

$43,500.

b.

$43,000.

c.

$16,000.

d.

$42,500.

 

 

 

132.A corporation has 10,000 shares of 8 percent cumulative preferred stock and 20,000 shares of common stock outstanding. Par value for each is $100. No dividends were paid last year, but this year a $200,000 dividend is paid. How much of this $200,000 goes to the holders of common stock?

 

a.

$160,000

b.

$80,000

c.

$180,000

d.

$40,000