a) Unpaid and undeclared preferred dividends are debts of the issuing firm. True False

b) If interest rates fall, the price of noncallable bonds will move up higher than that of comparable callable bonds.

None of the above

True

False

Uncertain

Uncertain

C) Ulrich Inc.'s articles of incorporation authorize the firm to issue 500,000 shares of $5 par value common stock, of which 410,000 shares have been issued by the company. The shares were issued at an average premium of 30% over the par value. Calculate the capital in excess of par value on the company's balance sheet.

$2,665,000

$3,250,000

$615,000

None of the above