-6 A company issued 5-year, 7% bonds with a par value of $100,000. The company received $97,947 for the bonds. Using the straight-line method, the amount of mees expense for the first semiannual interest period is: A. $3,500.00 B. $3,294.70 C. $3,705.30 D. $7,410.60 E. $7,000.00 C . Adidas issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adidas received $206,948 in cash proceeds. Which of the following statements is true? A. Adidas must pay $200,000 at maturity plus 20 interest payments of $8,000 each B. Adidas must pay $206,948 at maturity plus 20 interest payments of $8,000 each C. Adidas must pay $200,000 at maturity plus 20 interest payments of $7.500 each D. Adidas must pay $206,948 at maturity and no interest payments E. Adidas must pay $200,000 at maturity and no interest payments 20 Stockholders' equity consists of: A. Contributed capital and retained earnings B. Long-term assets C. Retained earnings and cash D. Contributed capital and par value E. Premiums and discounts A dividend preference for preferred stock means that: A. Preferred shareholders are guaranteed dividends B. Dividends must be declared on preferred stock C. Dividends are paid quarterly D. Preferred stockholders are allocated their dividends before dividends are allocated to common shareholders E. Preferred stockholders prefer dividends more than common stockholders