purchase of treasury stock have on the balance sheet? Total Assets Total Liabilities Stockholder's Equity A) No effect B) Decrease C) Increase D) Decrease No effect No effect No effect No effect Increase Increase Answer 34. Hopkins, Inc. has 1,000 shares of common stock and 1,000 shares of preferred stock outstanding. The preferred stock has a cumulative dividend preference. Both classes of stock have a par value of $10. The preferred stock has a dividend rate of 6 percent. Hopkins failed pay a dividend during the prior year. During the current year, the board of directors declares dividends totaling $2,000. Accordingly, the company will distribute dividends in the amount of: A) $2,000 to the preferred shareholders. B) $1,000 to each class of shareholders. C) $1,200 to the preferred shareholders and $800 to the common shareholders. D) $1,600 to the preferred shareholders and $400 to the common shareholders