1. The annual per share dividend requirement of a 6%, $100 par value preferred stock that was issued for $105 is:

$7.50

$6.38

$6.00

$10.00

2.

Retained earnings represents:

cumulative net income of the firm since its beginning that has not been distributed to its stockholders in the form of dividends.

the total net income of the firm since its beginning.

net income plus gains (or minus losses) on treasury stock transactions.

cash that is available for dividends.

3.

The dollar amount of the common stock on the balance sheet of a corporation that has common stock with a par value is the number of shares:

outstanding, multiplied by the par value per share.

outstanding, multiplied by the amount received per share.

issued, multiplied by the par value per share.

issued, multiplied by the amount received per share.

4.

The declaration of a cash dividend by the directors results in:

a decrease in cash and a decrease in retained earnings.

a decrease in retained earnings and an increase in current liabilities.

a decrease in net income and a decrease in cash.

a decrease in net income and an increase in current liabilities.

5.

The number of shares of a class of stock that are outstanding is:

the number of shares issued minus the number of shares owned by directors.

the number of shares issued minus the number of shares held as treasury stock.

the number of shares authorized minus the number of shares held as treasury stock.

the number of shares authorized minus the number of shares issued.