Q. # 1- A company has an outstanding issue of $100.00 pa value preferred stock It recently declared a $7.00 per share dividend on its common stock. How mush will be the company pay in annual per share preferred dividends if the prefered is :

a) $12.00 preferred stock?

b) 14% preferred stock?

c) $10.00 patially participating preferred, requiring that the preferred divident increase by $0.25 for every dollar the common dividend exceeds $5.00?

d)$6.00nfull participating preferred, requiring that the preferred dividend increase to equal the common dividend if the latter exceeds $6.00.

Q#2 - (Number of shares)

A company whose charter authorize 10 million shares, has sold 6 million to the public. Of these, 5 million are in the hands of investors today.

a) Haw many shares are in issued?

b) Haw many shares are autorized but not issued?

c) Haw many shares are outstanding?

d) Haw many shares are in the treasury?