Question

1. Topper Corporation has 60,000 shares of $1 par value common stock and 16,000 shares of cumulative 7%, $100 par preferred stock outstanding. Topper has not paid a dividend for the prior year. If Topper declares a $1.95 per share dividend this year, what will be the total amount they must pay their shareholders?
   A. $117,000.
   B. $341,000.
   C. $327,000.
   D. $177,000.
2. The ownership of common stock in a corporation usually carries the following rights:
   A. To vote for directors.
   B. To declare dividends.
   C. To share in a distribution of assets if the corporation is to be liquidated.
   D. Both declare dividends and share in a distribution of assets if the corporation is to be liquidated.
3. The board of directors’ primary functions includes all of the following except:
   A. Hiring corporate officers.
   B. Setting officers' salaries.
   C. Declaring dividends.
   D. Protecting the interests of the officers.
4. Shares that have been sold and are in the hands of stockholders are called:
   A. Outstanding.
   B. Issued.
   C. Treasury.
   D. Underwritten.

Answer 1

1) Topper Corporation has 60,000 shares of $1 par value common stock and 16,000 shares of cumulative 7%, $100 par preferred stock outstanding. Topper has not paid a dividend for the prior year. If Topper declares a $1.95 per share dividend this year, what will be the total amount they must pay their shareholders?

= 2(16000*$7) + (60000*$1.95)

c) $341000

2)The ownership of common stock in a corporation usually carries the following rights:

D. Both declare dividends and share in a distribution of assets if the corporation is to be liquidated.

3) The board of directors’ primary functions includes all of the following except:

D. Protecting the interests of the officers.

4) Shares that have been sold and are in the hands of stockholders are called:

B. Issued