Karate Company is authorized to issue 50,000 shares of its 10 percent, $100 par value preferred stock. On May 1, Karate issues 10,000 shares for $200 per share. On November 1, Karate declares the dividend and pays it on December 1. What amount of cash was paid to the preferred shareholders?

Question 9 options:

$500,000

$200,000

$100,000

$50,000

Question 10 ()

Samurai Corporation began and ended the year with 100,000 outstanding shares of common stock net income for the year totaled $1,200,000. Preferred dividends amounted to $50,000. Which of the following would be Samurais basic earnings per share?

Question 10 options:

$12.50 per share

$12.00 per share

$11.50 per share

$0.50 per share