ABC Company has the following: Preferred stock, 5%, noncumulative, $100 par, 100,000 shares issued and outstanding 10,000,000 If ABC pays dividends this year, how much will it pay as total dividends for its preferred stock? Group of answer choices 100 500,000 100,000 5
ABC Company has the following: Preferred stock, 5%, noncumulative, $100 par, 100,000 shares issued and outstanding 10,000,000 If ABC pays dividends this year, how much will it pay as total dividends for its preferred stock? Group of answer choices 100 500,000 100,000 5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. ABC Company has the following:
Preferred stock, 5%, noncumulative, $100 par, 100,000 shares issued and outstanding 10,000,000
If ABC pays dividends this year, how much will it pay as total dividends for its preferred stock?
Group of answer choices
100
500,000
100,000
5
3. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 15% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend?
Group of answer choices
1,500,000 increase
75,000 decrease
15,000 decrease
1,500,000 decrease
4. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 30% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend?
Group of answer choices
30,000 decrease
3,000,000 decrease
150,000 increase
150,000 decrease
5. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 2:1 stock split when the stock is worth $100/share. By what amount will retained earnings change?
Group of answer choices
0
10,000,000 decrease
100,000 increase
100,000 decrease
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