18. A company issued 8% non-cumulative preferred stock with a $100 par value. This A. Preferred stockholders are entitled to 8% of the annual net income each means: year. B. Preferred stockholders are entitled to 8% of the market value of the preferred stock each year. C. Preferred stockholders are guaranteed to receive 8% of all total dividends paid for that year D. The potential dividend to preferred stockholders is $8 per share per year. 19. In its most basic form, the earnings per share ratio is calculated as: A dividends paid on common stock divided by the average number of outstanding common shares. B. net income divided by the average number of outstanding common shares. C. total dividends paid divided by the average number of total stock shares. D. net income divided by average stockholders' equity 20. The sleek Guitar Company declared a 10% stock dividend (10,000 shares to be distributed when the par value was $10 per share). When this transaction is entered into the accounting system, how will it affect total stockholders' equity overall? A. no effect B. $100,000 increase betrease increase