Question
A company acquires 1,000 shares of its own stock when the stock is trading for $20 in April. In June, it reissues 100 shares at
A company acquires 1,000 shares of its own stock when the stock is trading for $20 in April. In June, it reissues 100 shares at $30 per share. How much would go into the treasury stock account?
a. $30,000
b. $18,000
c. $20,000
d. $3,000
Assume that a company has 40,000 shares of preferred stock where the annual dividend rate is $0.50 per share, and $20,000 in total. Assume further that the company has not paid dividends for the previous two years. If the companys stock were non-cumulative, how much dividend would the stockholders receive in the current year?
a. $60,000
b. $10,000
c. $20,000
d. None of these choices are correct.
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