Question

Select the correct answer.

Elem Inc. has issued 3,000, 8% preferred stock at $10 per stock and 10,000 common stock issued at $10 par value. The corporation's directors
declared that it would pay dividends of 5% at the end of the year. How much will the preferred stock holders receive?

A. $5,000
B. $2,400
C. $8,000
D. $1,500

Answer 1

B.

$2,400

Step-by-step explanation:

Correct on Edmentum

Answer 2

B. $2,400

Step-by-step explanation:

The computation of the amount does preferred stock holder received of dividend is as follows:

= Number of share issued × par value per stock × dividend percentage

= 3,000 × $10 × 8%

= $2,400

hence, the amount does preferred stock holder received of dividend is $2,400

Therefore the option B is correct