1. The outstanding stock is composed of 10,000 shares of $100 par, cumulative preferred 5% stock, and 50,000 shares of $20 par common stock. Preferred dividends have been paid every year except for the preceding two years and the current year. If $145,000 is to be distributed as a dividend for the current year, what total amount will be distributed to the preferred stockholders?

A. $75,000

B. $0

C. $145,000

D. $150,000

2. A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be

A. 160,000 shares

B. 40,000 shares

C. 120,000 shares

D. 10,000 shares

3. A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9. Subsequently, the company declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the stock dividend is to

A. decrease retained earnings, increase common stock, and increase paid-in capital

B. increase retained earnings, decrease common stock, and decrease paid-in capital

C. increase retained earnings, decrease common stock, and increase paid-in capital

D. decrease retained earnings, increase common stock, and decrease paid-in capital

4. On September 1, the board of directors of Colorado Outfitters, Inc., declares a 10% stock dividend on its 20,000, $1 par, common shares. The market price of the common stock is $30 on this date. The effect of the issuance of stock dividend is

A. decrease retained earnings by 30,000

B. decrease retained earnings by 60,000

C. increase common stock by 60,000

D. increase additional paid-in capital by 30,000

5. On June 30, the board of directors of Sandals, Inc. declares a 100% stock dividend on its 30,000, $1 par, common share. The market price of Sandals common stock is $35 on June 30. The effect of the issuance of stock dividend is

A. decrease retained earnings by 30,000

B. decrease retained earnings by 1,050,000

C. increase common stock by 1,050,000

D. increase additional paid-in capital by 30,000

6. Financial information for Ocean View includes the following selected data ($ in millions):

Net Income	$258
Dividends on preferred stock	$40
Treasury Stock	$50
Average shares outstanding	$300
Stock Price	$24.04

How much is the earnings per share?

A. 0.73

B. 0.86

C. 0.99

D. 0.62

Please explain all of them how and why.