Home / Questions / If 700 shares with a par value of $35/share, a dividend rate of 5% and redeemable for $50/
If 700 shares with a par value of $35/share, a dividend rate of 5% and redeemable for $50/share, are sold for $45/share how much dividend will the equity holders be entitled to?
A) $525
B) $1,225
C) $1,575
D) $1,750
16) Which statement about dividends is correct?
A) Dividends on cumulative preferred shares are not discretionary payments.
B) Dividends are mandatory payments required for both common and preferred shares.
C) Dividends are discretionary payments that can be made for common and preferred shares.
D) Dividends must be paid on common shares before dividends can be paid on preferred shares.
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