Question : 25.              All of the following features frequently applicable to preferred : 1370042

25.              All of the following are features frequently applicable to preferred stock except:

A)cumulative

B)recumulative

C)redeemable

D)participating

26.   The redeemable feature of preferred stock allows the preferred stockholder:

A)  To buy more shares of preferred stock at a set price.

B)  To redeem preferred stock for common stock with the right to vote.

C)  To sell the preferred stock for a set price at certain times in the future.

D)  To buy shares of common stock for cash and the preferred stock

27.   Preferred stock with a $50 par value and a stated dividend of 10% that was sold for $100 would entitle the owner of one share to an annual dividend of:

A)$50.00

B)$10.00

C)$ 5.00

D)$  .10

28.              When stipulated cumulative preferred stock dividends have not been paid for a given period of time, they are referred to as:

A)participating dividends

B)dividends in arrears

C)dividends payable

D)stock dividends

29.              Gibraltar Corporation has 200,000 shares of 9%, $50 par value cumulative preferred stock authorized, 80,000 shares issued, and 75,000 outstanding, as well as 300,000 shares of $10 par value common stock issued and outstanding. Dividends relative to the preferred stock are two years in arrears. If Gibraltar declares a $2,137,500 dividend during the current period, the amount of the dividend applicable to the preferred and common stockholders is:

A)$675,000 and $1,462,500, respectively

B)$1,012,500 and $1,125,000, respectively

C)$1,350,000 and $787,500, respectively

D)$2,025,000 and $112,500, respectively

30.              Nutritech Corporation has 500,000 shares of 7.5%, $100 par value cumulative preferred stock issued with 45,000 shares issued and 40,000 outstanding, as well as 275,000 shares of $1 par value common stock issued and 250,000 shares outstanding. Dividends relative to the preferred stock are three years in arrears. If Nutritech declares a $2,887,500 dividend during the current period, the per share dividend applicable to the preferred and common stockholders is:

A)$7.50 and $1.00, respectively

B)$22.50 and $7.95, respectively

C)$30.00 and $6.75, respectively

D)$40.00 and $1.00, respectively

31.              The number of shares of stock a corporation has sold to its stockholders is referred to as the number of shares:

A)issued

B)callable

C)authorized

D)outstanding

32.              The total number of shares of stock that a state has approved for issuance to shareholders is referred to as the number of shares:

A)issued

B)callable

C)authorized

D)outstanding

33.              A corporation’s repurchased stock intended for reissuance at a later date is called:

A)callable stock

B)treasury stock

C)convertible stock

D)redeemable stock

34.              The number of shares of stock outstanding is equal to:

A)the number of shares authorized less the number of shares issued

B)the number of shares issued plus the number of shares authorized

C)the number of shares issued less the number of shares of treasury stock

D)the number of shares authorized less the number of shares of treasury stock